How High Can Gold Peak This Year?

Gold has become one of the most trending commodities in the global economy as of now. The precious yellow metal has surpassed the $2,400 price threshold, triggering a wave of speculation and scrutiny on how the metal can truly peak this season.

Also Read: Cryptocurrency Can Never Dethrone The US Dollar, Experts Suggest

Possible Triggers Bolstering Gold Prospects

Gold has lately been thriving due to several geopolitical triggers and intense activities that are bolstering its presence in space. As global banks continue to purchase gold on a record spree, the narrative is now strengthening XAU, helping it retain its stellar price threshold.

With geopolitical tensions rising and escalating steadily, investors and economies are now pivoting towards gold to secure their returns. The precious metal’s recent surge to $2,400 is primarily fueled by the mayhem in Iran.

The nation’s president, Ebrahim Raisi, recently succumbed to death in an unprecedented plane crash. The unsteady economic environment has led a certain level of speculation to spread amuck in the space, leading investors to assume the worst and hoard gold to secure their returns.

Alongside that, the BRICS alliance which is slowly inching towards establishing its own currency, is also troubling the USD. With rumors of the USD in jeopardy, gold is gaining better price momentum as compared to its historical metrics before.

Gold Price Forecast for 2024

Per the Kobeissi Letter, gold’s price is now sitting at one of the highest price pedestals, trading at $2,400 at press time. The precious yellow metal has claimed this victory in a span of three months.

Per the platform, gold prices are now up 35% and have managed to outperform S&P 500 gains by 29%.

Also Read: Gold Prediction: What’s In Store For XAU? A New ATH Or A Price Decay?

“JUST IN: Gold prices rose to a new record high of $2,450, now up 23% in just 3 months. Gold prices are now up 35% since October, even outperforming the S&P 500’s gain of ~29%. As geopolitical tensions in the Middle East continue to escalate, gold is being viewed as a global safe haven asset. Meanwhile, world central banks set another all-time record for gold net purchases in Q1 2024.”

If gold continues to maintain its progression, it can climb to a better price milestone in the near future. Per AXI, gold can hit $2,727 in the last quarter of 2024 or earlier in 2025.

“Gold’s price forecast for 2025 at the Bloomberg Terminal is between $1,709.47 and $2,727.94.”

Per Bloomberg analysts, with the amount of traction that XAU has been receiving as of late, it can soon climb past $5000 per ounce in no time.

“Bloomberg Intelligence Strategist Mike McGlone predicts that both gold and its “digital version,” bitcoin, will appreciate by 2025. The price of gold has shown divergence strength, being up 84% since 2015, when the Fed just started its tightening, and could be heading for $7,000 by 2025.”