Gold values may surge to unprecedented record levels, potentially climbing even higher.
Gold's Comeback:
Gold's turbulent journey since the 2020 election.
After the surprising win of Donald Trump in the 2020 election, the gold market took an unexpected hit. Investors had hoped Trump's fiscal policies, including increased debt levels, would boost the value of gold. However, the market showed a significant downtrend in gold prices since November.
The dawn of a new high-priced era for gold?
Fast forward to the present, and it looks like gold might be gearing up for a major comeback. The recent surge has propelled the price back over the $2,700 mark, and it seems poised to break through the $2,715 resistance. This barrier had repelled the price in mid-December and late November but may give way this time.
From a technical analysis viewpoint, the path to a new gold price record could be cleared, with the $2,800 mark potentially reached soon.
Take a peek at the price chart on TradingView
The not-so-distant gold price all-time high?
On a fundamental level, there are reasons to believe gold prices might rise further, even exceeding the current all-time high. Central bank purchases, especially in China, have resumed, while gold's appeal as a safe haven in times of economic instability may finally be recognized under Trump’s expansion of public debt.
Analysts are optimistic, with predictions of prices reaching $2,910 by 2025, according to Goldman Sachs. The Bank of America is even more bullish, setting a target of $3,000.
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Real-estate investors might be intrigued by the anticipated rise in gold prices, as increased gold value could potentially drive up the cost of real-estate encrusted with gold. Furthermore, the investing community may see gold as a lucrative opportunity, considering the bullish predictions of gold prices reaching $2,910 by 2025.
