Gold has melted faces in 2024 with remarkable performance and consecutive all-time highs throughout the year. Now, Mike McGlone suggests a potential rally toward $3,000 per ounce, testing this psychological resistance.
The senior commodity strategist for Bloomberg Intelligence shared this analysis on X (formerly Twitter) on April 2. Essentially, the combination of two financial indicators backs Mike McGlone’s forecast of a gold rally to $3,000 per ounce.
“The lowest CBOE S&P 500 Volatility Index (VIX) and highest US T-bill rates since about 2007 may be a foundation for gold to head toward round-number resistance of around $3,000 an ounce.”
– Mike McGlone
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Gold price analysis and $3,000 prediction
Gold is currently trading at $2,286 after making a new all-time high on April 3, before the market closes. This price represents a 10.8% year-to-date gains from the $2,062 per ounce on January 2. Additionally, it saw gains of 26% from the year-over-year bottom of $1,810 per ounce.
From its daily chart, gold suggests having two key support levels that investors should watch. The first at $2,150 and the second at $2,050, with a core psychological support at $2,000.
Notably, these could become important zones in the short term, considering an overbought Relative Strength Index (RSI) of 82.14. Thus, gold could face a retracement to balance a greedy bull market with its current strong momentum.
A run to McGlone’s $3,000 target per ounce would mean over 30% gains for the leading commodity. For that to happen, gold must continuously see an increased demand, as occurred lately.
Interestingly, the precious metal went back to the spotlight, with young Chinese investors acquiring gold beans for long-term exposure. Shall that continue, gold has the potential to keep up the pace as one of the world’s leading assets.
In this context, the $3,000 target is a more optimistic forecast than Claude 3 Opus AI recent gold’s prediction of $2,800 per ounce.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
