Analysts See Gold Reaching $2,600 per Ounce Amid Strong Market Demand

While bitcoin experienced a 12% decrease following its all-time high last week, gold has shown relative stability over the past five days, with only a slight 1% decline in the same period. In a similar vein to crypto enthusiasts, advocates for gold predict that the metal will continue its upward trajectory, potentially reaching the $2,600 mark per ounce within this year.

Gold Set for Significant Growth, Experts Say

Much like bitcoin (BTC), gold has reached its peak value this year, reaching $2,193 per troy ounce of .999 fine gold on March 8, 2024. Currently, the price of gold hovers around $2,155 per unit, having climbed 7.7% against the U.S. dollar in the last month. In the past five days, gold’s value has decreased by a slight 1%. Advocates for gold, mirroring the enthusiasm of bitcoin supporters, argue that the price of gold will ascend further in U.S. dollar terms within this year.

For example, Florian Grummes, the managing director at Midas Touch Consulting, shared with Kitco News his belief that reaching $2,535 per ounce by summer is within the realm of possibility. He noted, “China dominates the physical gold market through strong demand from the central bank and the buying frenzy at the beginning of the Year of the Dragon. Through arbitrage trading, the paper gold market in the West is increasingly under pressure.” Grummes further commented:

The recent uptick in gold prices is largely credited to purchases by central banks. “Foreign central banks aren’t just buying gold to hedge against political risk,” remarked Peter Schiff on Monday. “They’re trying to get out in front of a major decline in the dollar’s value and a potential sovereign debt crisis. It’s U.S. investors who don’t understand these risk, which is why they’re not buying.” Schiff also pointed out that converting half of one’s bitcoin assets into gold was a “smart move.”

Carley Garner, co-founder of brokerage firm DeCarley Trading, shared with Kitco News a forecast for gold that echoes the predictions made by Grummes. “The nice thing about breakouts is they have a habit of retesting the breakout area,” Garner told the newsdesk. “I Think gold is going much higher; my weekly charts and monthly charts are telling me somewhere around $2,600, maybe even a little more than that,” she summed up.

What do you think about the analysts who believe gold could climb as high as $2,600 per ounce? Let us know what you think about this subject in the comments section below.