Currently, the precious metal is benefiting from a variety of positive factors, including the Fed’s long-awaited “pivot” toward aggressive rate cuts in 2024. In a note to clients, analysts at GSC Commodity Intelligence reiterate their view that “the Fed will cut rates by a total of 100 basis points by the end of this year.”
And then there are central bank gold purchases, which show no signs of slowing down any time soon. According to proprietary data from GSC Commodity Intelligence, 74% of the world’s central banks plan to significantly increase their gold purchases in the second half of 2024.
And last but not least: the historically strong correlation between US national debt and the price of gold.
Compelling evidence shows that the US national debt has increased from $5 trillion to $35 trillion during this period – the price of gold has increased eightfold since 2000.
But now things get really interesting. If history repeats itself, the price of gold could reach $5,000 an ounce when the U.S. national debt hits the $70 trillion mark.
All this tells us one thing: from now on, the price of gold can only go in one direction.
And that is higher, much higher!
This is exciting news for the Bulls, but painful for everyone sitting on the sidelines who must now decide how much FOMO they can handle.
