Adam Hamilton, the founder of Zeal Intelligence, a financial consulting company, predicts that gold prices will rise as American investors turn to gold, fleeing from traditional stocks and the burst of the artificial intelligence (AI) bubble. Hamilton explained that gold experienced this price upswing without this main demand factor, stressing that it was a very bullish circumstance.
Gold might still have the strength to keep climbing in the current geopolitical and economic situation. According to Adam Hamilton, the founder of Zeal Intelligence, gold prices are poised to keep climbing as Americans dive into precious metals as the stock market and artificial intelligence (AI) bubbles burst.
In an article published on Mining.com, Hamilton states that gold prices reached this level, rising 38.7% in less than 11 months, registering several all-time highs without the usual suspects behind this surge during this period.
He pointed out that this gold bull market has been powered mainly by Chinese investors and central banks, with the participation of gold futures speculators. He explained that demand is unlikely to slow in the short term as stock markets rout while yuan gold keeps surging.
Gold’s popularity is also related to the pessimistic forecasts for the U.S. dollar. Hamilton declared:
With out-of-control US-government spending still ramping the mind-boggling US debt while Treasury interest expenses soar, the US dollar’s fundamental outlook is dismally-bearish. Nothing beats gold for weathering globally-rampant fiat-currency inflation and debasement.
This, and the comeback of the demand from American investors, can potentially take gold to over $2,950 if $100 billion – what Hamilton calls “pocket change” – from the stock market drips to gold alternatives. However, Hamilton states that the bull market gains will be even higher as stock investors will need “many months if not years” to reestablish even trivial 1% gold allocations.
Other analysts and banks have also predicted increases in gold prices. Goldman Sachs analysts recently stated that they had the highest conviction that gold would reach $2,700 per ounce as soon as next year.
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