The gold price has been predicted to surge in value by another 25% after recently surpassing the $2,400 level, recording a new all-time high. Indeed, the Central Bank’s acquisition of the metal has been the predominant driver of its value increase over the course of the year.
However, there is anticipation that expansion in investors will lead to even further heights for the asset. Specifically, a gold report from asset management firm Sprott has predicted an increase as the audience for the asset widens. Moreover, it aligns with recent predictions that gold could be well on its way to $3,000 in 2024.
Also Read: BRICS: Citigroup Predicts Central Banks to Drive Gold to $3,000
Gold Has Room for 25% Surge Even After $2,400 Record in April
One of the most surprising developments for the investment sector this year has been the popularity of gold. The asset has reached a record high multiple times this year, beginning in December of 2023. Its most recent landmark value was recorded this month and has been perceived by many as the beginning of what could be an extended run.
Now, Sprott Asset Management senior portfolio manager John Hathaway has predicted the gold price to surge another 25% following its $2,400 ascension this month. Specifically, he identified the investor base as the primary reason. Identifying an expanded investor group outside of Central Banks, who have been driving much of recent acquisitions.
“For the most part, gold’s 14.1% year-to-date price increase (period measuring 1.01-1.09/2024) has generated only perfunctory media stir,” Sprott stated. “However, the indifference of investors in Western capital markets suggests to us that there is significant potential for further upside.”
Also Read: The Important Reason Why Gold Prices Are Rising
Therefore, the firm predicted that if mainstream investor buying mirrored 2008 and 2011, it could drive even further. Specifically, they forecasted “the gold price could potentially rise another 25%,” beyond the recent brokerage analysis of the asset potential.
The metal’s success is in large part due to China’s acquisitions. Yet, if the more mainstream investors turned their attention to gold amid the inflation and interest rate concerns in the United States, the value could only ascend further.
However, gold still needs to compete with Bitcoin, which has dominated much of the mainstream investor interest thus far in 2024. With the Bitcoin Halving event taking place this week, it is looking more difficult for gold to break ahead this month.