Gold Prices Soar 50% This Year, Potentially Reaching $10,000 Per Ounce by 2028
The price of gold has surged nearly 50% this year, reaching an all-time high of over $4,000 per ounce earlier this week. According to market analyst Ed Yardeni, the precious metal could continue to skyrocket, potentially reaching a staggering $10,000 per ounce as early as 2028.
This rapid ascent is driven by investor concerns over inflation, trade tensions, and the de-dollarization trend, which has led to a decline in the value of the US dollar. The dollar fell sharply on Friday after President Donald Trump announced an additional 100% tariff on China and limited US exports of software, causing stocks to suffer their worst loss since April.
Yardeni's prediction of $10,000 per ounce by 2028 is based on gold's current pace, which has seen the metal increase in value by nearly 50% this year alone. If this trend continues, it could have significant implications for investors and central banks, who may need to reassess their strategies in response to a potentially volatile market.
The surge in gold prices has been fueled by concerns over inflation, trade tensions, and the de-dollarization trend. According to Yardeni, "investors are flocking to gold as a safe-haven asset, seeking protection from economic uncertainty." He notes that gold's price is likely to continue rising as long as these underlying factors remain in place.
The current market situation has also been attributed to the ongoing trade tensions between the US and China. The imposition of additional tariffs by Trump has led to a sharp decline in the value of the dollar, making gold more attractive to investors. As one analyst noted, "the trade war is having a direct impact on the price of gold, as investors seek safe-haven assets to protect their portfolios."
In addition to its potential implications for investors and central banks, the surge in gold prices also has significant economic consequences. According to some estimates, a $10,000 per ounce price could lead to a 20% increase in the cost of jewelry, watches, and other gold-based products.
As the market continues to navigate these uncertain times, experts are warning investors to be prepared for potential volatility. Yardeni advises investors to "be cautious and diversify their portfolios" as the price of gold is likely to continue rising. With the current pace of gold's ascent, it remains to be seen whether it will reach the predicted $10,000 per ounce by 2028.
In conclusion, the surge in gold prices has significant implications for investors, central banks, and the broader economy. As market analyst Ed Yardeni notes, "the price of gold is likely to continue rising as long as underlying factors remain in place." With a potential price of $10,000 per ounce by 2028 on the horizon, investors would do well to be prepared for the volatility that lies ahead.
Sources:
Jason Ma, Weekend Editor at Fortune
Ed Yardeni, Market Analyst
This story was compiled from reports by Fortune and Fortune.
