Gold Price in 2017 Surges on Rising Syria and North Korea Tensions

New York (April 15)  The gold price in 2017 has pushed through resistance levels this past week. It has rallied to its highest level since November 2016.

But will gold prices sustain their newfound heights? The good news: Seasonally, the price of gold is entering a strong period that, on average between 2001 and 2012, has seen gains of almost 4% between early April and late May.

Editor's Note: Your Free Guide to Investing in Gold and Silver in 2017

If you combine that with U.S. tensions with Syria and North Korea, investors have plenty of reason to expect gold to power higher.

But gold's recent move through its stubborn 200-day resistance level of $1,260 may cause headwinds for the metal.

Today, I'll discuss those potential headwinds and how much higher I expect gold prices in 2017 to rise.

First, let's take a look at the strong performance from the metal this past week…

Price of Gold Posts a 2.7% Weekly Gain

After settling at $1,254 on Friday, April 7, gold prices opened Monday morning lower at $1,249. This drop suggested that the U.S. missile strike on Syria was overblown. Prices recovered slightly by the close and settled flat at $1,254.

On Tuesday, April 11, gold once again shot higher as investors grew concerned about U.S. action in Syria and incendiary rhetoric toward North Korea. At the same time, the U.S. Dollar Index (DXY) retreated on weaker Treasury yields and a stronger yen. The gold price closed the day at $1,274 for a 1.6% rise.

SOURCE: MONEYMORNING