NEW YORK ( -- The bullish upside momentum is continuing in gold following some profit taking and consolidation earlier in the session.

As of this writing, gold futures for April delivery are making new highs for the day at $1,611.70 per ounce, up $7.10. Outside markets were calmer earlier in the session as apparently fears over the situation in Cyprus were abating.

Unfortunately, markets are now going to be news-driven until further clarity on the Cyprus issue is obtained.

The Cyprus debacle could set an extremely bad precedent and send a very wrong message. Obviously, the eurozone has been struggling with sovereign debt issues for some time.

Although markets have done a great job of looking the other way, the debt crises is now rearing its ugly head once again. As I have stated, these types of problems are not created overnight and they definitely do not go away overnight. The thought of bank depositors taking a haircut is not going to instill more faith in the EU or its banking system.

In fact, should such plans come to pass it could have a dramatic impact on other EU peripheral countries. Many are still struggling with debt issues, and one cannot rule out the possibility of a run on major banks should investors and depositors get nervous. I do not think we are there just yet -- but it definitely gives one something to think about.

Gold's reaction to the news over the weekend has thus far been positive. It appears that, in fact, a close over resistance at $1,600 has attracted more buying. It is interesting to see gold moving higher along with the Dollar Index. This just goes to show people are simply looking for perceived safe-havens right now.

As discussed previously, the next stop for gold futures would be $1,619ish. Trade above this level opens the door to considerable upside. Likewise, the SPDR Gold Shares ( GLD - Get Report) is moving higher as well on safe-haven inflows. This instrument looks poised to take out the February highs just over $156. Should that happen, we could see $162 in short order.

Please visit our Web site for updates on the gold market and useful information for purchasing the physical metal.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Matt Zeman is a trader at Kingsview Financial. He began his trading career as a runner in the grain pits at the Chicago Board of Trade before becoming an arbitrage clerk. Eventually he started trading equity options and stocks. Matt now is a full-time futures broker and also authors a blog for gold investors at Appreciate Gold. He has been a frequent guest on CNBC, Fox and Bloomberg, and provides his views on the stock, bond and futures markets for financial media including Dow Jones, the L.A. Times and The Associated Press. Matt is a member of the Chicago Board of Trade, and carries series 3, 7 and 66 licenses.