On Monday (April 13), spot gold surged, with prices climbing by more than 1.5% during the session to reach their highest level in over seven years. In early Asian trading on Tuesday, spot gold was hovering around $1,720 per ounce. The well-known financial news website Economies.com has just published an article analyzing the future outlook for gold prices.

Analysts note that panicked investors are flocking to gold, a safe-haven metal, amid concerns about the impact of the COVID-19 pandemic on the global economy and U.S. corporate earnings.

Spot gold climbed as high as $1,722.60 per ounce during Monday’s session and closed at $1,712.66 per ounce, up $23.76 or 1.41%.

Economies.com wrote in an article that gold prices have rebounded and broken through our primary target level of $1,703.25 per ounce. With gold holding above this level, the outlook remains for a continued bullish trend in the medium to short term.

Economies.com cautions that its next target for gold is $1,770.00 per ounce. On the 4-hour chart, the 50-period EMA is providing support for gold prices.

Economies.com added that gold prices must remain above $1,703.25 per ounce for the current rebound to continue.