① "Bond King" Gundlach predicts that Gold prices could climb to $4,000 per ounce, a 20% increase from the current price; ② He emphasized that tariffs fundamentally changed traders' views on Precious Metals, with Gold now seen as a currency asset; ③ Analysts believe that the healthy consolidation of Gold prices may continue in the short to medium term, but the structural factors supporting Gold strength remain solid.
According to the financial news on May 11 (Editor: Ma Lan), billionaire investor Gundlach, known as the "Bond King," stated that the record rise of Gold is far from over. He predicts that Gold prices might rise to $4,000 per ounce, a 20% increase from the $3,345 level on Friday afternoon.
This Friday, after briefly falling to a new low of $3,275, Gold prices rebounded strongly and returned above the 20-day moving average. Traders pointed out that if Gold prices can continue to rebound, there is hope for the bull market momentum triggered on Monday to be sustained.
Gundlach also provided some theoretical support for this expectation. He pointed out that volatility related to tariffs fundamentally changed traders' views on Precious Metals, with Gold no longer seen as a speculative tool for short-term traders or a long-term holding tool for survivalists.
He believes that due to concerns over geopolitical turmoil, including various factors such as tariffs and the current scale of USA debt, the market has now viewed Gold as a true currency asset.
Gundlach also added that the market environment for Other risk Assets such as Stocks is challenging. The US stock market could experience a crash in the short term, and the S&P 500 Index may fall to 4,500 points, which means a 20% decline from the current level. In the medium term, investors are in a risk-averse market.
Healthy consolidation and significant rise.
Analysts pointed out that since Trump announced winning the 2024 presidential election, every adjustment in Gold prices started with sharp declines, but as strong long-term bullish expectations pushed back up, the time needed to recover the losses has gradually decreased.
The healthy consolidation of Gold prices may continue in the short to medium term, but the structural factors supporting the strength of Gold still exist: the weakening of the dollar and fluctuations in U.S. Treasury yields, the continued de-dollarization by central banks in BRICS countries, concerns over the expansion of the U.S. fiscal deficit, and geopolitical issues between Ukraine, the Middle East, and now India and Pakistan.
According to data from the World Gold Council, the global physical Gold ETF market increased by 11 billion USD in April, reaching 397 billion USD, marking strong Bids.
JPMorgan has also raised its Gold forecasts again, with Commodity Strategist Natasha Kaneva expecting that in the coming years, Gold prices could reach an ambitious level of 6,000 USD without much effort, which is approximately an 80% increase from the current levels.
Editor/jayden
