Gold (GC=F) is a stone’s throw away from record highs. The precious metal futures are hovering around $2,038 an ounce on Wednesday, 2.5% away from former highs of $2,089.20 reached in August 2020.
Investors have been piling into gold, in anticipation of a Fed pivot as the US economy slows. A weaker dollar and a drop in the 10-year treasury yield are also signs of an expected ease in monetary policy which is helping buoy gold prices.
“Yields are starting to look toward the Fed to pivot, and it looks like gold’s just ready to break out. I think these boomer rocks, they’re set up for a boom,” Mike McGlone, Bloomberg Intelligence Senior Macro Strategist, told Yahoo Finance Live.
Gold enthusiasts have been predicting a break-out for some time.
“The key thing that has pressured gold the past 10 years or so has been the U.S. stock market outperforming the world,” said McGlone. “The key trigger will be when the U.S. stock market continues to underperform the rest of the world, and gold will be the shining star.”
The recent banking crisis helped accelerate a move into the precious metal, as the Federal Reserve initiated moves to shore up confidence in banks.
“When things get scary out there, investors run to safe havens, and gold is basically one of those major safe havens,” Gareth Soloway, chief market strategist at Inthemoneystocks.com and verifiedinvesting.com, recently told Yahoo Finance.
Soloway is targeting $2,100 for 2023, and a meteoric rise from there.
“By 2024, I would actually say we’ll get well above $3,000, maybe $3,500,” said Soloway. “That’s going to be the monster up year.”
Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Source: https://finance.yahoo.com/news/gold-inching-toward-all-time-highs-as-investors-pile-into-the-safe-haven-151641799.html