Gold Prices Forecast to Hit Record High

By Staff, Agencies

Gold prices could soon reach a record $2,500 per ounce, driven by safe-haven investor demand in the wake of global uncertainty and geopolitical tensions, some analysts are now projecting.

Futures have risen 3% in the past couple of weeks, briefly breaching the key psychological threshold of $2,000 per ounce on Tuesday.

The rise marked the highest daily close so far this month, and any move above $2,006.37 per ounce this week would make it the highest weekly close since the spring, researcher Fundstrat’s technical analyst Mark Newton wrote in a note on Wednesday seen by Business Insider.

“This is quite positive technically, and I expect that gold has begun its push back to new all-time highs,” wrote Newton. He believes a rise past $2,009.41 per ounce should lead to gold entering the $2,060-2,080 range.

Newton told Business Insider that a breach of resistance at $2,080 would signal a “definite technical breakout,” which he expects to quickly drive gold even higher. “My technical target for gold is $2,500/oz, and it looks appealing to be long precious metals given falling real rates, rising cycles and ongoing geopolitical conflict,” he said.

The analyst later clarified that his timeline for $2,500 isn't necessarily for the end of the year but is an “intermediate target.” 

Investors traditionally turn to gold in times of market uncertainty to hedge risks and as a store of value. Bullion has been seen as a safe haven during periods of economic instability, stock market crises, military conflicts, and pandemics.