Current Gold Prices and Market Dynamics
Many analysts expect bullion to break $2,500 CAD and reach over $3,000 CAD within a year due to market dynamics such as a possible recession, Fed rate reduction, excessive inflation, and US dollar overvaluation. On August 6, 2020, gold reached $2756.00 CAD per ounce, the peak price in five years.
- Yellow metal demand is high, notably from central banks diversifying their holdings. Geopolitical concerns and the threat of a worldwide recession are also driving investors to gold. Retail gold demand in China has held up in 2023. It rose by 22% year-over-year.
- Gold supply has been falling for years. Major miners have decreased exploration and mining development, making new resources harder to locate. All of this suggests limited supply won’t meet growing demand.
- With COVID-19, governments worldwide have launched large stimulus packages, increasing existing vast debt. Gold prices have risen with increasing government expenditure and deficits due to currency debasement and inflation worries.
- Interest rates are so low that government bond yields are low. However, gold may appreciate and hedge inflation. Gold is a good option for diversifying and protecting assets. Interest rates and gold prices go down together. Bonds offer greater yields than gold when interest rates increase, reducing gold demand.
Expert Price Forecasts and Gold Price Targets
Gold prices have been volatile for a year, but many analysts expect them to soar in the coming months almost 26% higher than current levels.
$3,000 CAD Price Target
World’s largest and most prominent bank JPMorgan Chase & Co. thinks gold will hit $3,000 CAD per ounce in 2024.” Gold will be the only method to avoid Great Reset wealth confiscation.” Rickards advises investing 10-15% in actual gold and silver.
The yellow metal is gaining Favor among mainstream commentators. Capital.com, a financial trading website, predicts a $3,000 gold price in 2024.
Some may think $3,000 CAD gold is unrealistic, but excessive money creation, growing inflation, and lack of confidence in fiat currencies are driving prices up. Experts say the gold bull market has a long way to go. Gold may have its brightest days if their predictions are right. Buy gold today before it soars.