New York, NY – A market veteran predicts that gold is on track to reach $2,600 per ounce within the next year due to various geopolitical and structural factors at play. This projection comes as the precious metal has recently hit record highs, surpassing $2,300 per ounce before experiencing a slight pullback in trading.
Investors are closely monitoring the reasons behind gold’s ascent, particularly as stock market gains continue to remain robust. Juerg Kiener, the chief investment officer at Swiss Asia Capital, highlighted the positive outlook for gold based on forward curve analysis, indicating a potential rapid increase in price beyond $2,300. He mentioned concerns about an inventory collapse in the gold market, posing risks to derivative structures.
Kiener also pointed to geopolitical tensions, a shifting global landscape toward a “multipolar world,” and changing international trade dynamics as contributing factors to his bullish outlook on gold prices. Additionally, he cited government interventions, such as excessive money printing, as further fueling the upward trajectory of gold. Historically, gold has been considered a safe haven asset and a hedge against inflation.
Analysts have pointed to geopolitical events, such as conflicts in Gaza and Ukraine, upcoming elections, and potential recessions in major economies, as drivers for a medium-term positive outlook on gold. Anticipated interest rate cuts by the U.S. Federal Reserve are also expected to bolster gold prices, as lower borrowing costs typically increase the metal’s attractiveness compared to fixed-income assets like bonds.
In 2023, Chinese investors and households showed increased demand for gold amidst uncertainty in the country’s property market and stock market volatility. Central banks worldwide have been increasing their gold reserves, providing additional support for gold prices. The global flow of precious metals has been shifting eastward, with growing demand in Asia and BRIC countries.
Overall, the outlook for gold remains optimistic, with various factors converging to drive prices higher in the near to medium-term. The potential for gold to reach $2,600 per ounce within the next year reflects a combination of geopolitical tensions, monetary policies, and shifting market dynamics that are favoring the precious metal’s value.
