The observation that the Gold price is rising because of geopolitics or due to the rate of inflation is very common. However, I believe that the price of gold is simply affected by the present physical supply and demand at spot price. Geopolitics & Inflation are factors which affect the demand and supply of physical gold, but they are certainly not the only factors, other factors are: mine supply, central banks transactions, jewelry demand and numerous other potential issues.
In my opinion the physical supply and demand can support higher and possibly much higher price of gold. The geopolitical and Inflation factors could also support much higher gold price under some circumstances. Gold is still somewhat undervalued asset when viewed by some perspectives.
Lately there are lots of bullish market comments regarding commodities and especially gold, contrarian investor might suggest that this is a sign of some kind of top. However, this is the third Elliot wave for gold and public participation is normal at this stage, any pullbacks are supposed to be shallow.
Technically, the price of spot gold is still very strong, a short term trend line is broken and another trend line is established almost immediately.
Mr. Gary Dorsch www.sirchartsalot.com Published interesting market commentary ( Forex , Gold , Central Banks , commodities and a bit of geopolitics) - link