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Gold prices predicted to reach $2,950 as investors shift from stocks

GrafaGrafa2024/09/13 03:45
By:Isaac Francis

Adam Hamilton, founder of Zeal Intelligence, predicts that gold prices could climb to $2,950 as American investors turn to precious metals amid the decline of stock markets and the bursting of the artificial intelligence (AI) bubble. 

Hamilton argues that this shift is driven by a combination of economic uncertainty and investor caution, creating a favorable environment for gold. 

In an article published on Mining.com, Hamilton highlighted that gold prices have already risen 38.7% in less than 11 months, achieving several all-time highs. 

He noted that this surge occurred without the typical drivers, such as U.S. investor demand. 

Instead, the rise was fueled primarily by Chinese investors, central banks, and gold futures speculators. 

As the stock markets face volatility and the Chinese yuan gold market continues to strengthen, Hamilton believes demand for gold will remain strong in the short term. 

Hamilton also emphasised the growing concerns about the U.S. dollar's outlook. 

"With out-of-control US-government spending still ramping the mind-boggling US debt while Treasury interest expenses soar, the US dollar’s fundamental outlook is dismally-bearish," he stated. 

He believes gold remains the best hedge against rampant inflation and the debasement of fiat currencies, which makes it attractive to investors seeking stability. 

Hamilton further explained that if even a small amount, around $100 billion, moves from the stock market to gold, prices could exceed $2,950 per ounce. 

He described this sum as "pocket change" in the context of stock market flows. 

However, he cautioned that it could take "many months if not years" for stock investors to adjust their portfolios to include even a modest 1% allocation to gold. 

Other analysts share a similar outlook. 

Recently, Goldman Sachs analysts expressed strong confidence that gold could reach $2,700 per ounce by next year, reinforcing the growing sentiment that the precious metal may continue to perform well as economic uncertainties persist.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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