Published: November 24, 2023 7:03 am
Author: RT
Investors are increasingly seeking a safe store of value amid economic uncertainty, according to Fundstrat
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.”
READ MORE: Gold outperforming stocks – MarketWatch
Bullion has been rallying since the attack by Palestinian armed group Hamas on Israel on October 7. Experts and traders expect the escalation and uncertainty in the Middle East to continue driving gold prices higher.
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.
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