24K99 News Adam Hamilton, founder of financial consulting firm Zeal Intelligence, predicts that as US investors flee from traditional stocks and the bursting of the artificial intelligence (AI) bubble, they will switch to gold, thereby driving up the price of gold.
(Screenshot source: Bitcoin.com)
Hamilton explained that gold experienced this price increase without this major demand factor, stressing that this is a very bullish situation.
Under the current geopolitical and economic situation, gold may still have the strength to continue to rise. According to Zeal Intelligence founder Adam Hamilton, gold prices are expected to continue to rise as the stock market and the artificial intelligence (AI) bubble burst and Americans pour into precious metals.
In an article published on the precious metals information website Mining.com, Hamilton pointed out that the price of gold rose 38.7% in less than 11 months, reaching several record highs, and no common suspect factors could be found during this period to explain this surge.
He pointed out that this round of the gold bull market is mainly driven by Chinese investors and central banks, and gold futures speculators are also participating. In his opinion, demand is unlikely to slow down in the short term.
The popularity of gold is also related to the pessimistic predictions of the outside world about the US dollar.
Hamilton claims: “The fundamental outlook for the dollar is extremely bearish as uncontrolled US government spending continues to drive up incredible US debt while the Treasury's interest expenses soar. There is nothing better than gold when it comes to coping with raging global fiat inflation and depreciation.”
This, combined with the recovery in demand from US investors, if 100 billion dollars (Hamilton calls it “zero”) flows into gold alternatives from the stock market, the price of gold may exceed 2,950 US dollars/ounce.
However, Hamilton pointed out that since stock investors need “months or even years” to re-establish even a negligible 1% gold allocation, the return on the bull market will be higher.
Other analysts and banks are also predicting a rise in the price of gold.
Goldman Sachs (Goldman Sachs) analysts recently stated that they are convinced that the price of gold will reach 2,700 US dollars/ounce as early as next year.
At 15:34 Beijing time, spot gold was reported at 2516.96 US dollars/ounce.