|

Are we at the beginning of a new supercycle for Gold? [Video]

As Gold prices continue their unstoppable run higher, scaling new all-time record highs for a fourth consecutive quarter in a row – analysts at GSC Commodity Intelligence are calling this the beginning of a “new historic Supercycle for Gold”. 

Gold’s meteoric rise to glistening new heights has continued to go from strength to strength this year, significantly bolstering its iconic status as the 'must-have' asset class in every portfolio. 

Gold has been on a parabolic run since last October – rallying from near the $1,800 level to score back-to-back all-time highs – not once, not twice, but on multiple occasions this year. 

On Tuesday, Gold prices skyrocketing to a new all-time record high of $2,531 an ounce, surpassing the precious metals previous all-time high of $2,509 an ounce reached only a few days earlier. 

The yellow metal is now up over 26% from its February low of $1,984 an ounce. But even more remarkably, Gold prices have now chalked up a whopping gain of almost 41% since October. 

Gold's record-breaking run has been nothing short of impressive. Never before in history have we seen the precious metal score multiple all-time record highs in such a short space of time. 

And this could just the beginning! 

According to GSC Commodity Intelligence – “Gold is not just making new highs in 2024, but it’s really breaking out. That's a tell-tale sign, which ultimately suggests that we could be at the beginning of a new historic Supercycle for Gold”. 

All of this means one thing and one thing only. Gold prices are heading in one direction from here. 

And that's higher, a lot higher! 

The big question now is: How high will Gold prices go this year? 

The answer to this question may come from the Federal Reserve's eagerly awaited Annual Economic Symposium taking place in Jackson Hole this week. 

There is no deny, that the Fed’s Annual Economic Symposium comes at a pivotal time. 

A much weaker-than-expected U.S jobs report earlier this month sparked fears of a recession, which drove traders to crank up their bets that the Fed could cut interest rates more aggressively than previously thought. 

In his keynote address this week, Federal Reserve Chair Jerome Powell is expected to lay the groundwork for the long-awaited pivot and confirm that interest-rate cuts are coming as soon as their next FOMC meeting in September. 

But more importantly, traders will be scrutinizing every word from Jerome Powell for clues into how many rate cuts the Fed will deliver this year. 

If the Fed eases insufficiently in this cycle, the economy could tip into a recession. On the flipside, however, if the Fed cuts rates too quickly, it could reignite inflation. 

Whichever way you look at it, one thing is clear. The stars appear to be aligning for Gold and it won't take much for prices to reach $3,000 an ounce, if not exceed that mark – a lot sooner than anyone expects! 

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Author

Phil Carr

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

More from Phil Carr
Share:

Editor's Picks

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10
Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.
 Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?
Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.