Gold prices have grown from just above $2,000/oz. at the start of 2024 to $2,600/oz. as of this week, a rally that doesn’t seem to be stopping or even decelerating. In fact, many analysts see prices soon soaring to $3,000/oz., after which they may rise even higher.
Analysts see gold rapidly homing in on a $3,000/oz. price tag.
Gold’s explosive price rally has prompted members of some of the largest financial intuitions in the country to predict gold prices of $3,000/oz. arriving very soon.
Aakash Doshi, head of commodities for North America at Citi Research and Bank of America (BofA) analyst Jason Fairclough both say they expect gold will soon reach $3,000/oz.—Doshi predicts by mid-2025, while BofA says gold may reach the new milestone by the start of 2025. Doshi cites strong demand for physical gold as a major factor supporting growth, and both Doshi and Fairclough point to Federal Reserve interest rate cuts as a main catalyst for price growth.
Edmund C. Moy, former Director of the U.S. Mint and Senior IRA Strategist for U.S. Money Reserve, mentions additional factors that helped gold reach this latest milestone. “Key factors like interest rates, demand from central banks, buying by Chinese and Indian citizens, and increased global instability have pushed prices to new record highs more than 30 times in the last 12 months,” Moy says. “Those factors, in some cases unfortunately, are increasing in intensity, and gold prices have responded. I expect they will likely break the $3,000/oz. level for the first time in history.”
$3,000/oz. isn’t the stopping point for gold.
Central banks’ voracious acquisition of gold over the past couple years does not appear to have any reason to slow down. Geopolitical strife, another major catalyst for gold demand, is likely to continue for some time. Internal issues within the United States, such as a rapidly growing federal debt and financial uncertainty, are both expected to continue into 2025 and beyond.
If these predictions are correct, gold’s current rally may soon reach $3,000/oz.—and for those of us who prefer to plan ahead, that means it’s time to start thinking about what comes next.
No matter how high gold goes in the near term, it remains a powerful long-term asset.
While the rapid rise from $2,000/oz. toward $3,000/oz. is exciting, I don’t want that excitement to get the better of me. Those who truly understand gold’s potential know that it’s not an asset to buy and sell within a few months—gold’s true place is as a long-term asset. For example, in September 2001 a single ounce of gold was worth just above $271/oz. Now, in September 2024, the precious metal is worth just shy of $2,600/oz., an increase of nearly 860%.
So it should come as no surprise that, as excited as I am to see gold reach $3,000/oz. for the first time in history, I’m planning to continue holding onto my gold well beyond 2025, and I can’t wait to see where gold goes from there.
