Commodities are known to top following major geopolitical events but don't discount gold seeing 10% moves in any direction as the market is at the highest probability of a melt-up since the 1980s, according to Jared Dillian, of The Daily Dirtnap.
Gold surged 18% between March 1 and April 12, rising around $400 and hitting new all-time highs on escalating Middle East tensions, record purchases by central banks, concerns over sticky inflation, soaring U.S. government debt, and continued fiat debasement.
Following the rally, major banks have upwardly revised their gold price outlooks. Citigroup is now calling for a $3,000 gold price over six to 18 months, while Goldman expects gold to hit $2,700 by the year end, and UBS has upgraded its year-end target to $2,500 an ounce.
