The gold spot price hit a new all-time high on Tuesday (July 16), rising as high as US$2,469.30 per ounce.
The yellow metal has been on a record-setting run this year, buoyed by strong demand from central banks, as well as a high level of buying from retail investors in Asia. It is now up about 20 percent year-to-date.
As of 5:00 p.m. PDT on Tuesday, gold was slightly lower than its record price, trading at US$2,467.25.
Gold has US$2,500 clearly in sight, but what does its price trajectory look like once it gets there?
Despite its historic run, many market participants believe the yellow metal still has further to go.
“I think clearing US$2,400 for good — trading a few weeks above that level would be key,” he said. “Eventually I think we’re going to go much higher. The timing of that is always the hard part. Getting back to where I think we’re going to be at the end of this cycle, I think the gold price is going to be somewhere between US$6,000 and US$8,000.”
With the gold price historically high, market participants are hoping gold equities are next.
Many experts believe generalist investors will become interested in gold stocks when gold miners start to release their second quarter results in the next month or so. Gold’s 2024 price rise kicked off in earnest in Q2, meaning that it’s the first quarter where companies will see the increase reflected on their balance sheets.
“I think when companies start to report their second quarter earnings later this month, we’re going to start to see some very attractive cashflow numbers — better than the first quarter and better than the year-ago comparisons,” he explained in a conversation with INN. “I’ve got to think that investors, when they see two back-to-back quarters of strong cashflow numbers, are going to start to look at these companies.”
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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