What's next for gold price's record-breaking run? The charts say this

NEW YORK (February 12) Gold smashed through new record highs this week as it neared the $3,000 mark, fueled by factors including tariff fears and strong underlying demand, according to Gary Wagner, editor of TheGoldForecast.com.

In a recent interview with Kitco News, Wagner noted that gold's recent rise follows a dip to around $2,650, which he predicted in a prior appearance. The current rally is "a new leg, and it followed the correction that we saw with gold trading down," Wagner said.

Wagner observes that traders are eager to buy any dips in gold prices, indicating strong market sentiment. Following Federal Reserve Chair Powell's testimony, "gold prices dipped, but traders quickly stepped in. They bought the dip," he said. "Traders are waiting for that dip so they can buy it and take advantage of it."

President Trump's 25% tariff on steel and aluminum contributes to inflation risks, increasing demand for gold as a safe haven. According to Wagner, "Tariffs evoke the possibility of inflation heating back up."

Gold has seen a significant rally, gaining approximately 14% since mid-December.

Psychological Levels & Potential Pullback

The price of gold is nearing the key psychological level of $3,000 per ounce. "Any of those big numbers – $1,000, $2,000, $3,000 are going to be key psychological levels," Wagner said. He believes reaching $3,000 is "not if, but when," adding, "I think relatively soon."

While gold is on a strong uptrend, Wagner acknowledges the possibility of a pullback or correction. 

-KitcoNews