(Updated with more analyst comments)

(Kitco News) -Gold prices pushed through $1,500 an ounce on Tuesday and continued to hold above that level in Wednesday’s dealings as a weak U.S. dollar and concerns over fiat currencies continue to support prices.

The $1,500 area was a target for many market watchers and now that it has been breached they are reviewing where the yellow metal’s price may go from here. Below are comments from several gold market participants:

Afshin Nabavi, head of trading at MKS Finance

“”For the time being, it looks like $1,505-$1,506 is small resistance. There seems to be some profit-taking around there this morning. Once we break $1,505-06, then it looks like we may be possible to see a rally up toward the 20-ish area. It looks like it is going to go higher. For me, $1,500 is support right now.

“Longer term, as long as the situation we’ve living in doesn’t change politically or economically, I think there is only one way—up for gold. Then $1,600, $1,700 or even $2,000 at this point in time doesn’t look too far-fetched.”

Daniel Pavilonis, senior market strategist, Lind-Waldock

“I think this thing will keep going higher. The dollar (index) is breaking down. I think it’s going to go down to 70, and gold will keep on going.

“If any kind of (deteriorating) situation happens here in the U.S., there is going to be flight to quality into the metals…I think silver is going up to $50. So I think gold is going much higher also. We could see $2,000 gold by the end of the year.

“We’re starting to see inflation now. Because of all of the structural financial damage to currencies across the board, including the U.S., people are moving away from the U.S. dollar and buying gold. I think more central banks are buying gold now…plus you have all those funds that are buy-side in gold and silver.”

Charles Nedoss, senior market strategist, Olympus Futures

“In the shorter term, I’m going to throw out $1,520 as a solid number. But you’re in uncharted territory. If you want to take a bigger-term number, a 38% extension of the whole move we’ve had in gold from the lows to the highs…puts you up in about the $1,770 area for the longer term.”

Still, he cautioned, the market could pause for a while around $1,500. “A lot of times, markets will stop at even numbers,” he says.

Sterling Smith, commodity trading adviser and market analyst with Country Hedging Inc.

“What’s driving the rally in gold is the pervasive weakness in the U.S. dollar. It’s at a new low for the day and almost at a new low for the year. There’s a general disdain for fiat currencies, particularly with a focus on the dollar. That’s helping metals. Other currencies are rallying, but it’s not because of their uber strength… it’s the weakness of the dollar. The rally in gold is very civil. It’s not overheating itself like its ugly cousin silver. I see a move in the second quarter to $1,580-$1,620. We may find some profit-taking at the end of May or June as summer approaches. It won’t be a serious correction, just some weakness and a sideways move.

Jimmy Tintle, analyst at Transworld Futures

“That ($1500) was everyone’s main number. We didn’t blow through it. Today and tomorrow will be important to watch. We could see some correction, or we could just hang out here. I could see some profit taking going into a three-day weekend. (Comex futures markets are closed Friday for Good Friday.) We could have an early rally to $1,510-$1,515 (basis Comex June futures) and then settle the week close to $1,500. There was not a lot of volatility on the move.

Mike Zarembski, senior commodities analyst, optionsXpress

“A lot of traders took some profits after hitting this milestone level, but today we’re right back up through it fairly easily so far. (Choosing) an upside target is really hard to say, as we’re going into brand-new uncharted territory. But if the weakness in the dollar continues, as it appears to be, the next target is probably around $1,520-$1,525, and if we can get through that’s and get some real upward momentum in the market, $1,600 would not be out of the question.

“You might start to see some profit-taking around these levels. People might take some money (off the table), especially going into a holiday weekend, especially with Europe on an extended holiday. If we get another day or two rally here, if we were around $1,510 to $1,515, I could see a little bit of selling going into the weekend.”

Michael Gross, broker and futures analyst with OptionSellers.com

“We think the rate of ascent will slow…,” says Gross, suggesting that now that gold has hit the $1,500 target of many traders and as general risk sentiment improves, some speculative flows may go into other commodities. “We still think we could push gradually to $1,550 in the next one to three months. We don’t see a spiking type of rally but a steady-grind rally higher.”

Zachary Oxman, managing director of TrendMax Futures

“This is just the beginning. I think this week we can reach $1,520 by week’s end. This is just a springboard up. I think we’ll see $1,600 (in the) second quarter. There’s a lot of inflation around, and fears of inflation are being continually stoked. The dollar is selling off aggressively. A lot of people are asking if this is a bubble. I would have said yes before, but we’ve have some recent dips where people have used those to accumulate gold. The market looks strong.

Spencer Patton, founder and chief investment officer of Steel Vine Investments

“There was a lot of speculation that this was going to happen. Now that we’ve crossed $1,500 – that was a pretty important psychological barrier - the pattern in gold is that we lurch up, consolidate and correct, then lurch back up again. We have to look at both gold and silver – they’ve really rallied non-stop, especially silver. It’s up $15 in a month. No commodity does that. It’s setting the stage for a severe correction. So we can have a correction, but long-term the trend is up, and I’m targeting $1,750.

John Person, president of NationalFutures.com

“I don’t see any technical or fundamental reasons for a pullback in the market right now. It’s tough for somebody to add and look to buy at $1,500. But at the same time, you don’t want to step in front of a freight train and start selling this thing. You don’t want to get short.

“Right now, let’s target $1,530 to $1,550. Everything is interwoven. With the decline in the dollar, they’re bidding the gold market up. …People want to buy gold because they firmly believe inflation is coming into the works. We have multiple facets of demand driving investors into the market place. You might see some short covering in this market as well. There is probably another 2% left on this leg to the upside before we see any kind of meaningful correction.”

By Debbie Carlson dcarlson@kitco.comand Allen Sykora asykora@kitco.com; of Kitco News

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