Gold prices printed new highs in 2024 as central banks of developing countries accumulated tonnes of the precious metal. The accumulation spree was pushed by China, Russia, India, Brazil, and South Africa adding billions worth to their central banks.
The spike in gold prices kick-started by central banks brought in investments from retail investors and institutional funds. All three forms of investors made profits as the precious metal surged between January to April this year.
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Here’s When Gold Prices Could Hit $3,000 Per Ounce
The next target for gold remains at $2,500 and the bulls are pushing towards the $3,000 an ounce milestone. The XAU/USD chart, which tracks its performance shows prices hovering at the $2,314 range on Wednesday. It surged close to 0.30 points in the day trade climbing up by 0.01%.
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So when will gold prices touch the $3,000 mark? Senior Bloomberg Commodity Strategist Mike McGlone predicts in the latest update that the next leg-up for gold prices is $3,000 an ounce. He also warned that crude oil prices could dip drastically and fall to $50 a barrel due to the tensions in the Middle East.
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According to McGlone’s prediction, gold has a better chance of reaching the $3,000 mark in the next six to 18 months. Therefore, the precious metal could reach the target by the end of 2025, he forecasted.
“Gold $3,000, Crude $50, Copper and Corn $4 vs. S&P 500 at 5,000. Commodity buoyancy may depend on the S&P 500 sustaining above 5,000. The fact that beta can drop 10% below that and still be in an uptrend from the 2020 low may augur risks of commodity deflation. Paths for gold toward $3,000 an ounce, WTI Crude oil at $50 a barrel, and copper and corn below $4 a pound/bushel could get easier if the index breaches 5,000 support,” he estimated.