Forecast: gold price to reach $2535 by summer 2024

In his latest market commentary, Florian Grummes, managing director at Midas Touch Consulting, said gold's rally above $2,200 an ounce finally ended a 13-year phase of correction and consolidation, when prices repeatedly fluctuated between $1,900 and $2,075 an ounce.
"Regardless of short-term pullbacks or intermediate-term consolidations, this likely only signifies the beginning of the next major uptrend in the precious metals sector," he wrote.
Although there is a risk that gold prices will fall back to the initial breakout area around $2,075 an ounce. Grummes said he ultimately sees an initial price target at $2,535 an ounce. However, he added that such corrections should be seen as buying opportunities.
According to the expert, he expects gold to reach its target within three months. Currently, the market seems to be holding initial support above $2,150 an ounce, a level that triggered significant selling in early December 2023. April gold futures last traded at $2166.20 an ounce, down 0.66% for the day.
"It is safe to assume that after two and a half months of consolidation, the ongoing rally is unlikely to end after just three weeks. If in doubt, the new uptrend could continue quickly but with volatility," he said.
One reason Grummes is optimistic that the correction will be short-lived is how little attention the breakout rally in the gold price has received from generalist investors and the mainstream media.
"Gold market sentiment remains neutral and is not yet an impediment to price gains," he said.
Grummes added that with rising risks in overheated stock markets and potential economic uncertainty, it's only a matter of time before investors start to look to gold as a safe-haven asset.
Of course, not all investors are ignoring precious metals. While Western investors continue to pour money into the "Magnificent Seven" tech stocks, investors in Asia are busy buying gold.
Grummess said he expects Chinese investors to continue buying gold as they follow the example set by the government. The People's Bank of China has increased its gold reserves for 16 consecutive months, buying 12 tons of the precious metal last month.
"China dominates the physical gold market due to strong demand from the central bank and buying frenzy at the start of the Year of the Dragon. Due to arbitrage operations, the paper gold market in the West is under increasing pressure," the analyst said. "Overall, the macroeconomic environment remains very favorable for gold prices."