Gold prices continued to rise last week after breaking through last October’s highs of $1,530 per ounce on Thursday (January 2). On Friday, prices continued to climb above $1,550 per ounce, closing the week at $1,552.10 per ounce (see the following chart).

The immediate catalyst for the increase in gold prices was the drone killing of a top Iranian general ordered by the Trump administration. This raised immediate concerns about a possible war between the two countries, causing investors to seek gold’s “safe-haven” feature.

This phase of increasing gold prices could test last year’s previous high of $1,571.29 per ounce, which was set last September.

Barron’s reports that gold prices may hit all-time highs in the final stages of this ride:

“‘If we think about it in percentage terms, to imagine gold making a new all-time high sometime in 2020 doesn’t seem like such a stretch,’ says John Roque, a technical analyst with Wolfe Research in New York City. …

“‘We believe gold will (a) break out above resistance at $1,557, (b) work to $1,650, and then (c) make a new all-time high,’ says a recent Wolfe Research report.”

Rick Andrews is president of Avant Capital Management.