Gold Price Forecast: Bullish Trend Continues, $4,000 Target in Sight
As the price of gold broke out above $2,000 per ounce in February 2024, our bullish outlook has remained steadfast. Trading within an upward channel, gold surged to $2,600 by the end of last year and recently hit a record high of $3,300. Our target of $4,000 by the end of this year is becoming increasingly achievable, with $5,000 as a potential goal for 2026.
The closure of the gold window by President Richard Nixon in 1971 marked a significant shift in the gold market, leading to two major bull markets. The first bull market saw a twentyfold increase in gold prices from August 1970 to January 1980, while the second saw a sevenfold rise.
Since early 2022, central banks worldwide have been increasing their holdings of gold in response to geopolitical tensions, particularly after Russia’s invasion of Ukraine. Following the freezing of Russia’s foreign exchange reserves by the US and its allies, countries opposed to American interests have been diversifying their reserves into gold.
In conclusion, the bullish trend in the gold market shows no signs of slowing down, with the potential for significant price gains in the coming years. Investors may want to consider adding gold to their portfolios as a hedge against geopolitical uncertainty and inflation.