Skip to content

Gold to hit $2,400 in six months, Weiss Ratings senior analyst projects

Gold to hit $2,400 in six months, Weiss Ratings senior analyst projects

Mike Larson, a senior analyst at rating agency Weiss Ratings, has recommended investing in precious metals, stating that gold and silver will surge within the next sixth month, mainly inspired by the Federal Reserves’ policies. 

Speaking to Kitco News, Larson indicated that the precious metals are likely to record an inflow of capital in the coming months. According to Larson, investors have held back from the precious metals over the fear that the Fed will remove policies like lower interest rates. 

He notes that the rising inflation has accelerated investors’ fear due to confusion over the next Fed move to contain the situation. 

Furthermore, Larson suggests that the current stock market is overvalued, and most investors cannot afford to put their money in such assets. According to the analyst, the situation leaves precious metals as the cheaper option for investors. He projects that gold will hit upwards of $2,400. 

“I think that that is likely to be eclipse next year. I don’t think it’s going to be a runaway where you’re talking about $4,000 gold, but you know, $2,200, $2,300 or $2,400, somewhere in that range, I think in sort of a corresponding moving silver, I think it is likely on the table. And again, it’s going to come from the release of that fed fear, pressure valve, whatever that’s been keeping people from, getting involved,” said Larson. 

However, he stated that once investors realize that the Fed won’t aggressively remove the policies, they will focus on precious metals. Larson believes that the Fed is under pressure to favor the employment side of its mandate over inflation.

‘Invest in paper and gold ETFs’

For investors, Larson noted that both paper and gold exchange-traded funds (ETFs) offer the perfect opportunity to get involved. Notably, since recording a high of above $2,000 in August last year, gold prices have struggled to recover. 

Consequently, some gold ETFs have recorded negative returns in 2021. According to a previous report, the top seven gold ETFs in the U.S., by the highest average daily trading volume, returned an average of -7.41% on a year-to-date basis as of October 18.

Related video: Gold and silver to ‘eclipse’ record highs in 6 months, this is the trigger


Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts