Gold has finally gained the upper hand, toppling major financial avenues, by delivering spectacular gains as of now. The metal has recently hit a new high of $3818 per ounce, marking its fresh new ascent. The asset does not seem to stop its surging price rally anytime soon. How high is gold truly planning to surge now? Let’s find out.
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Gold Price Breaks $3818: Why Is the Metal Surging?
Gold has become the new breakout asset, surging rapidly across the radar. The asset has now become a premium safe haven option for investors to explore amid weakening faith in the fiat current narratives. The price of gold has been primarily surging due to the weak US economic growth factors, giving rise to a volatile fiat market structure. Speculations regarding the Federal Reserve conducting more than one rate cut this year are also rising, making the markets volatile in general. This scenario is shaping gold’s luminous price path, helping the asset attract a crowd and significant price traction.
Noteworthy economist Peter Schiff attributes the current gold price surge to rising inflation, unemployment, and swelling Federal Reserve debts as one of the reasons fueling its rally.
“The mainstream media has no idea why gold is rising. They attribute the gain to uncertainty, volatility, or rising geopolitical risks. They refuse to recognize that rising unemployment, swelling federal deficits, rate cuts, and a weakening dollar will lead to soaring inflation.”
Another financial expert, Daniel Lacalle, commented on how global banks around the world are also playing a key role in shaping the ongoing gold price rally.
“Gold continues its seemingly unstoppable rise. Gold is soaring because fiat money has stopped being a reserve asset in many central banks around the world, while governments continue to spend as if nothing mattered. via Bloomberg.”
Gold: Next Price Stop?
According to Rashad Hajiyev, gold is rising rapidly and could overshoot $4K price levels, as predicted by Hajiyev earlier.
“Gold broke out on August 28th from a 4.5-month formation and since then has produced a 12% rally. Most importantly, gold never formed a meaningful correction, giving a chance to jump in. Gold could potentially overshoot my revised $4k target…”
The expert projects a mid-October timeline for the metal to break out and hit the $4000 mark as its new ATH.
“Gold broke out last Friday but failed to follow through, giving back part of the day’s rally. Gold gained 2% during the passing week. Gold needs to rally 6.5% to reach $4k, which could happen already by mid-October.”
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