Gold Still Pointing High, Analysts Believe $3,000 Attainable

Gold is becoming a key asset in international markets, as its price levels skyrocketed last month, closing out a very positive February despite the most recent pullback. An ounce of the precious metal reached $2,954, driven by fears of a prolonged trade war between the U.S. and other countries.

Jesse Colombo, a financial analyst recognized for predicting the last financial crisis, is not worried by this move and believes that $2,800 is a key support that has to be maintained.

In social media, Colombo stated that he expects gold to test this support before rising to $3,000 and even higher. Colombo specified that this pullback “is primarily due to the sharp rally in the U.S. dollar rather than any intrinsic weakness in gold itself (hence why gold is holding up much better when priced in euros).”

The circumstances that took gold to these high levels continue to be in place, as the Trump administration has reiterated its intention to apply tariffs to China, Mexico, Canada, and even the European Union (EU).

Some analysts state that these circumstances have intensified ever since, as now investors might be even more motivated to flee to hard assets due to a possible fallout in the negotiations between Russia and Ukraine.

During February, the perceived advancement of peace talks was cited as one of the causes that prompted an earlier gold pullback. “There should be technical profit-booking because war premium should be slightly eroding,” said Ajay Kedia, director at Mumbai-based Kedia Commodities.

Kedia also predicted a top of close to $3,000 as long as negotiations fail to reach a solid path to peace in the Russian-Ukrainian conflict.

Last week, Singapore-based dealer Bullionstar reported its suppliers were experiencing an “unprecedented demand” of gold in large bars, reporting “tightness” in the stock as investors and institutions entered the market.

Read more: Gold Suppliers Face ‘Unprecedented Demand’ as Large Investors Flock to Precious Metal