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"Momentum begets momentum and many are now betting on $3,000 gold"

ended 23. October 2024

Gold has has hit a new fresh high amid ongoing geopolitical uncertainty and central banks either cutting or expected to cut rates further, with many now betting that the yellow metal will hit $3,000 per ounce. One expert said: “Uncertainty drives gold up and there is a lot of that right now all over the world". A second said: “We can expect the $3,000 gold level to be breached with a high degree of certainty.” Meanwhile, a third warned that while $3k gold is a possibility, “the gold market risks overheating and may face bouts of profit-taking, so investors should brace for short-term fluctuations as gold reaches new heights.” Their views are below.

7 responses from the Newspage community

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Riz Malik
Independent Financial Adviser at R3 Wealth
We could easily surpass $3000 an ounce given bullion's rise in 2024. Gold is the ultimate safe haven and store of wealth for central banks and large institutional investors. Until the major conflicts de-escalate and uncertainty retracts, the sky is the limit for the yellow metal.
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Wes Wilkes
CEO at IronMarket Wealth
The breakout in gold looks set to push higher. With the upcoming US election creating uncertainty and ongoing geopolitical tensions, we can expect the $3,000 gold level to be breached with a high degree of certainty. With developing central banks seemingly preferring it to US treasuries or anything denominated in the dollar, it could even happen before we close the door on 2024.
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Prem Raja
Head of Trading Floor at Currencies 4 You
The strength in precious metals and gold in particular this year has been phenomenal, with factors such as lower interest rates, the U.S election and ongoing Middle East tensions seeing gold prices reach new highs of $2700+. I personally believe gold is still on an upward trend and $3000 per ounce is now a real possibility. In the short term a small correction is due, and this is something we will probably see from November into December, and then it will be worth bidding again going into 2025. It's still a bull market for precious metals and pullbacks are healthy.
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David Belle
Founder and Trader at Fink Money
Momentum begets momentum and many are now betting on $3,000 gold. We are still seeing large developing nations and their respective central banks bidding for gold, perhaps as a response to inflation that is still alive in some parts of the world. Another driver is the BRICS conference where Russia and China might want to be seen to be replacing reserves with anything other than the Dollar. Uncertainty drives gold up and there is a lot of that right now all over the world.
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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
As global tensions threaten to overflow, rising geopolitical anxieties have ignited a contemporary gold rush, with investors flocking to this age-old refuge. Gold's allure is undeniable as a safe haven, rocketing past the symbolic $2,700 mark late last week. A spree of central bank rate cuts has set the stage for a fresh cycle of monetary easing, propelling gold on a relentless upward trajectory with seemingly ample room for further gains. This, combined with a world rife with international turmoil, could be the spark that pushes gold prices to the $3,000 threshold. Yet, despite the enduring bullish outlook, the rapid climb in gold prices could lead to significant volatility. With a series of unprecedented highs, the gold market risks overheating and may face bouts of profit-taking, so investors should brace for short-term fluctuations as gold reaches new heights. In an era marked by uncertainty, cautious investors are driving the precious metal to unprecedented levels.
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Anita Wright
Independent Financial Adviser at Ribble Wealth Management
Although gold has reached a new all-time high, the real action in gold prices hasn't started yet, and there is still much upside potential. Many key drivers that historically push gold prices higher are not yet fully in play. For instance, real interest rates remain positive, and the U.S. dollar has retained some strength. Interest rate cuts have only just begun, and we have not yet seen the significant negative real yields that often fuel gold's rise. In addition, geopolitical factors, such as sanctions on Russia, are pushing many BRICS countries to reduce their dependency on the dollar, which could lead to dollar weakness in the near future—a key driver for gold. With the fiat currency system under strain and a potential "race to the bottom" for many currencies, gold could continue its upward momentum. It's possible that gold could reach the $3,000–$3,200 range before seeing another pause.
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Faisal Sheikh
Managing Director at Monmouth Capital
Gold approaching the symbolic $3,000 mark is certainly a welcome boost to our client portfolios. The reason we hold gold is that it dances to a different tune to equities and bonds. When your goal is to protect and grow client wealth over decades, that diversification benefit, especially in times of crisis, brings out the true value of gold. In a highly uncertain geoplitical environment, gold can come into its own.