Gold price towards 3,100 USD/ounce, increase is not slowing down

Gold still has upward momentum

Gold is currently approaching $3,100/ounce. Although the momentum indicators show that overbought conditions are on the rise, experts say the market still receives solid support from fundamental factors.

Gold prices have risen about 8% in March and are expected to close the quarter at a 17%.

Naeem Aslam - Investment Director at Zaye Capital Markets said that although gold has had a significant increase this year, prices still have the momentum to go up:

Investors clearly understand that most of the negative news has been reflected in prices, so there is not much room for price reduction. Especially considering the parabol spikes we have witnessed.

However, traders need to remember that the trade war is not over, which means that there are still many uncertainties. This shows that after a correction, gold prices may continue to rise.

Tom Bruce - Macro investment strategist at Tanglewood Total Wealth Management, commented that even when gold prices are high, this precious metal is still an attractive safe haven asset. He said gold has only had minor corrections due to high levels of economic and geopolitical instability. In this context, he continues to expect gold prices to increase further.

There are both technical and fundamental factors supporting golds rally. If you look at everything going on in the world economy and how the Donald Trump administration restructures global trade, it creates a lot of uncertainty - and that is a positive signal for gold, said Bruce.

David Morrison - Senior Analyst at Trade Nation, noted that gold has fallen into the overbought zone, but is still lower than six weeks ago. He warned investors to be cautious with current prices.

Up to now, profit-taking has only led to agricultural reductions and immediately had new purchasing power. But this further increases the likelihood of a strong correction in the future, Morrison said.

The $3,100 mark could be an important threshold

This is an impressive rally, and I have not seen any signs of a significant change at this point, said James Stanley, senior strategist at Forex.com.

However, chasing in this high price zone can be a difficult strategy, especially when prices have increased too quickly. With a quarterly cut early next week and prices still above $3,000 an ounce, I think a correction could happen in the near future. $3,100/ounce could be a trigger, the expert said.

Fawad Razaqzada, an analyst at StoneX Group, also predicted the possibility of taking profits in the short term and tracking the $3,100/ounce mark as a potential sign of a price peak.

"Buying momentum at the declines is still there, but the possibility of a sharp decline is increasing. When market sentiment turns negative and stocks fall, investors often liquidate profitable gold positions to free up deposits. In my opinion, the short-term activation level could be a break below $3,066/ounce, while in the longer term, a decline below $3,000/ounce could lead to a significant correction, said Razaqzada.

Factors supporting gold prices remain strong

In addition to technical momentum, gold prices are still supported by US economic data showing slowing growth. Next week's job data is expected to create volatility in the market. Analysts say any signs of weakness in the labor market could put pressure on stocks and boost safe-haven demand for gold.

"The non-farm payroll may stagnate in March due to increasingly uncertain US economic prospects and Dogecoin (DOGE) related job losses, as some cryptocurrency-related companies have to cut labor" - economists at TD Securities commented.

In addition to economic data, experts will also monitor the global response to the US imposition of trade tariffs, which are expected to take effect on April 2.