Gold Market: Adequately Strengthened and United
Gold Prices Pumped Up!
Hype's on for Gold
The price of an ounce of gold might have dropped below the psychologically important level of $3,400, but don't let that fool you. Experts at Société Générale are optimistic, predicting a price target of $4,000!
Why are they so bullish? For starters, Société Générale maintained their gold allocation of at least seven percent, viewing gold as a momentum investment and a hedge against lingering geopolitical uncertainties.
In their latest multi-asset portfolio strategy, they believe the gold price needs to be above their $4,000 target before taking profits. "The protection of central bank reserves and decoupling from the U.S. is driving de-dollarization," the report states. "Central bank purchases remain a key price driver for gold. We expect the price to reach $4,200 per ounce by the second quarter of next year."
Now, let's get technical. To reach that $4,200 target, the first step is to retake the $3,400 mark. If the price breaks above the double top at $3,440, the path to the all-time high of $3,500 would become clear.
From a broader perspective, Société Générale anticipates that gold price momentum will amplify in the fourth quarter of 2025 and sustain till mid-2026, pushing prices higher towards the $4,000 to $4,200 range. The driving forces for this forecast include a surge in gold price momentum, aggressive central bank buying, and persistent safe-haven demand.
As for other major banks like Citigroup, they have a more cautious outlook, predicting a potential drop below $3,000 by 2026 due to reduced investment demand and improved economic conditions. But Société Générale remains more bullish due to the strong underlying demand and price momentum factors.
So, hold your horses! The golden age of gold may be just around the corner, with experts predicting prices to soar high in the near future. Consider your gold investments wisely and keep those portfolios shining bright! If you're looking for some guidance, precious metals expert Markus Bußler's Goldfolio newsletter offers insights on which mining stocks could boost your returns. Happy investing!
The optimistic prediction of Société Générale positions gold as a promising investment opportunity within the finance sector, with experts forecasting gold prices to reach as high as $4,200 in the near future. The bank maintains its gold allocation due to the precious metal's role as a hedge against geopolitical uncertainties and a momentum investment.
