There is no denying that it’s been quite an exciting year so far for Gold. The yellow metals unstoppable rise to glistening new heights has continued to go from strength to strength – outperforming Bitcoin, the S&P 500 and even the Magnificent Seven stocks in 2024.
Gold has been on an epic run since October 2023 – rallying from near the $1,800 level to score consecutive back-to-back all-time highs – not once, not twice, but on 37 separate occasions, so far this year.
Last week, Gold prices skyrocketing to a new all-time record high of $2,685 an ounce, surpassing the precious metals previous all-time high of $2,670 an ounce reached only a day earlier – extending its gains by an impressive 49%, over an 11-month stretch.
According to analysts at GSC Commodity Intelligence – the precious metal is being driving by "a multitude of bullish tailwinds" including the ongoing de-dollarization movement taking shape globally, with Central Banks around the world continuing to accumulate Gold at a record-setting pace.
The global pivot to lower interest rates. Alongside, growing instability in China’s economy, forcing Beijing to launch its most attention-grabbing economic stimulus package since the 2008 Global Financial Crisis.
The significance of these two factors alone cannot be understated. That’s because China’s massive stimulus measures could very quickly reignite global inflation, at the same time, when the U.S Federal Reserve is aggressively cutting interest rates.
And last but definitely not least – escalating concerns over ballooning global debt and uncontrollable government borrowing, which currently sits at record $315 trillion. This in itself is yet another major catalyst fuelling a global rush for Gold – making allocation for precious metals in a diversified portfolio an essential necessity.
The exceedingly high debt levels across the world’s major economies heightens the chances of not one, but potentially multiple debt crises ahead.
Over in the United States, the Congressional Budget Office forecasts that the U.S debt-to-GDP ratio will exceed 150% by 2034, from 98% at present. Put another way, that will slingshot the nation’s debt to the highest levels in U.S history.
To quote analysts at GSC Commodity Intelligence, “the next 10 years will be known as the Decade of Debt”.
Interestingly, there is a historically strong correlation between U.S debt and Gold prices. Conclusive evidence shows during the period U.S national debt has ballooned from 5 trillion to 35 trillion dollars – Gold prices have risen by 10x since 2000. That's a whopping gain of over 826% since the beginning of the century.
But here's where things really start to get interesting. If history repeats itself, Gold prices could reach $5,000 an ounce when U.S debt hits the 70 trillion dollar mark.
This ultimately means one thing. Gold’s secular bull market is only just getting started!
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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