Gold bulls are cheering and predicting more gains after the dramatic rally that pushed prices of the precious metal up by more than $200 in just two months. Gold briefly broke through the $2,100 level in early December, a new intra-day trading record.
“I think gold is in the early days of a bull market breaking out to new highs,” predicted Mike McGlone, Bloomberg Intelligence Senior Macro Strategist.
Hedge fund investor Paul Tudor Jones advised CNBC viewers that gold should “probably constitute a larger portion of your portfolio than in the past” because we are experiencing “the most threatening and challenging geopolitical environment.”
Since the Palestinian terrorist group Hamas launched a savage attack on Israel on October 7, igniting an intense war, gold has climbed steadily. Adding more fuel to gold’s ascent has been a rapid decline in Treasury bond yields from late October through November, which depressed the U.S. dollar.
Now, some analysts are looking for the coming year to bring new highs for gold. “The anticipated retreat in both the U.S. dollar and interest rates across 2024 are key positive drivers for gold,” Heng Koon How, head of economics and market strategy at Singapore-based United Overseas Bank, told CNBC. He sees gold climbing to $2,200 in the coming months.
In spite of gold’s gains, some investors believe many potential investors are on the sidelines, still waiting to get in. “It’s super underinvested,” Stepehen Klein, chief operating officer and co-portfolio manager at hedge fund AFBI told The Wall Street Journal.
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