|

Are we at the beginning of a new supercycle for Gold? [Video]

As Gold prices continue their unstoppable run higher, scaling new all-time record highs for a fourth consecutive quarter in a row – analysts at GSC Commodity Intelligence are calling this the beginning of a “new historic Supercycle for Gold”. 

Gold’s meteoric rise to glistening new heights has continued to go from strength to strength this year, significantly bolstering its iconic status as the 'must-have' asset class in every portfolio. 

Gold has been on a parabolic run since last October – rallying from near the $1,800 level to score back-to-back all-time highs – not once, not twice, but on multiple occasions this year. 

On Tuesday, Gold prices skyrocketing to a new all-time record high of $2,531 an ounce, surpassing the precious metals previous all-time high of $2,509 an ounce reached only a few days earlier. 

The yellow metal is now up over 26% from its February low of $1,984 an ounce. But even more remarkably, Gold prices have now chalked up a whopping gain of almost 41% since October. 

Gold's record-breaking run has been nothing short of impressive. Never before in history have we seen the precious metal score multiple all-time record highs in such a short space of time. 

And this could just the beginning! 

According to GSC Commodity Intelligence – “Gold is not just making new highs in 2024, but it’s really breaking out. That's a tell-tale sign, which ultimately suggests that we could be at the beginning of a new historic Supercycle for Gold”. 

All of this means one thing and one thing only. Gold prices are heading in one direction from here. 

And that's higher, a lot higher! 

The big question now is: How high will Gold prices go this year? 

The answer to this question may come from the Federal Reserve's eagerly awaited Annual Economic Symposium taking place in Jackson Hole this week. 

There is no deny, that the Fed’s Annual Economic Symposium comes at a pivotal time. 

A much weaker-than-expected U.S jobs report earlier this month sparked fears of a recession, which drove traders to crank up their bets that the Fed could cut interest rates more aggressively than previously thought. 

In his keynote address this week, Federal Reserve Chair Jerome Powell is expected to lay the groundwork for the long-awaited pivot and confirm that interest-rate cuts are coming as soon as their next FOMC meeting in September. 

But more importantly, traders will be scrutinizing every word from Jerome Powell for clues into how many rate cuts the Fed will deliver this year. 

If the Fed eases insufficiently in this cycle, the economy could tip into a recession. On the flipside, however, if the Fed cuts rates too quickly, it could reignite inflation. 

Whichever way you look at it, one thing is clear. The stars appear to be aligning for Gold and it won't take much for prices to reach $3,000 an ounce, if not exceed that mark – a lot sooner than anyone expects! 

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Author

Phil Carr

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

More from Phil Carr
Share:

Editor's Picks

EUR/USD stays weak near 1.1850 after dismal German ZEW data

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February. 

GBP/USD holds losees near 1.3600 after weak UK jobs report

GBP/USD is holding moderate losses near the 1.3600 level in Tuesday's European trading. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative keeps the Pound Sterling under bearish pressure. 

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday. 

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months. 

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.