Significant economic data and the threat of additional geopolitical instability have seen precious metals pop up strongly to start the week. As a result, various experts are broadcasting bullish gold price predictions. Moreover, those willing to wait could possibly see some wildly impressive returns.
Recently, Federal Reserve Chair Jerome Powell said during a panel discussion in Amsterdam that the Fed aims to keep interest rates where they are. While this news has a variety of implications, gold investors are viewing it as a positive that the central bank won’t hike rates despite price pressures.
On the geopolitical front, shocking news that Iranian President Ebrahim Raisi died in a helicopter crash has also sent precious metal prices roaring. As of this writing, gold carries a price of around $2,438. Notably, silver recently shot up beyond $31 as well, breaking psychological resistance at $30 per ounce.
Naturally, gold price predictions have enjoyed an upward trend of late. Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, stated the following:
“I am bullish on Gold for the coming week […] The US Dollar appears to be backing off a bit along with treasury yields. Also, if it does break out over $2400 resistance, technically that could open the door to a potential run at the $2,500 big round number.”
Near-Term Gold Price Predictions Seem a Foregone Conclusion
According to Kitco, Forex.com Senior Market Strategist James Stanley also recently expressed confidence regarding bullish near-term gold price predictions:
“Bulls put on a show this week and the move was pretty clean for the most part […] That continued the breakout from the falling wedge/bull flag in the prior week, and this week was all higher-highs and lows with a really strong move on Friday morning.”
Stanley added that, because the successful breach of the $2,400 level represented a significant test, this dynamic “keeps the door open for a possible run up to $2500.”
Adding to the geopolitical mix, Forexlive.com Head of Currency Strategy Adam Button noted that last week’s summit between Russian President Vladimir Putin and Chinese President Xi Jinping represented another reason for bullish gold price predictions. “If you’re a gold bull, the picture of Xi and Putin hugging is as good as it gets […] They’re trying to create a multipolar world, and you can’t do that if you’re relying on the dollar,” said the expert.
Kitco reports that 14 Wall Street analysts recently participated in its gold survey, which found bullish sentiment to be “as strong as it’s been this year.”
Meanwhile, the silver market is also proving to be encouraging. Although the other precious metal started off slowly in the first quarter, silver has been making robust moves lately. Since silver features some of the same fear trade catalysts, this has strong implications for gold price predictions.
Why It Matters
While $2,500 gold this week may seem like a reasonable forecast given the metal’s strong performance, that might not be the only target for bulls to look forward to. Economist Jim Rickards, who is known for delivering headline-grabbing predictions, broadcast the possibility of $27,000 gold by 2026. That’s up from a previous target of $15,000.
On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
