Gold prices are projected to surge to $2,600 per ounce within a year due to geopolitical factors and structural issues. The precious metal has been hitting record highs consistently, with spot gold breaking above $2,300 per ounce recently. Market veteran Juerg Kiener, the chief investment officer at Swiss Asia Capital, has noted that gold’s forward curve looks promising, with potential for rapid growth beyond the $2,300 mark.
Kiener highlighted the risk of a potential short squeeze in the gold market, which could drive prices even higher. Geopolitical tensions, a shift towards a “multipolar world,” and changes in international trade dynamics are all contributing to the bullish outlook on gold prices. Additionally, government stimulus measures and the likelihood of interest rate cuts by the U.S. Federal Reserve are further fueling the demand for gold as a safe haven asset and hedge against inflation.
Chinese investors and households have shown increased interest in gold, particularly as the property market in China faces uncertainty and stock markets experience turbulence. Central banks around the world have also been bolstering their gold reserves, providing further support to gold prices. This trend of growing demand for gold, especially in Asia and the BRIC countries, indicates a shift in global dynamics that could push gold prices even higher in the near future.
