Gold soars to record $2,500 - Fundstrat

On Monday, gold prices rose to a new high since late October, surpassing $2010.

The prices of the precious metal have rebounded from the entire drop in the first half of the month and are poised to keep climbing.

The dollar is weakening and geopolitical tensions remain high, causing gold to increase in value.

November could see gold prices rise even higher after October saw the metal's best performance since March, when a 7% increase was seen due to the intensification of the Hamas-Israel conflict in the Middle East.

On Friday, gold surpassed the key $2,000 level, marking its second consecutive weekly gain. This rise in the price of the precious metal is attributed to the weakening of the dollar, as investors are becoming more certain that the Federal Reserve has reached the peak of its rate hikes, according to Reuters.

The FxPro analyst team believes that gold has shifted to an upward trend after a period of correction in mid-November. They anticipate that this new growth could potentially reach new heights, surpassing the historical high of $2,100.

Fundstrat has predicted that gold prices will reach an all-time high of $2,500 per troy ounce, due to the anticipated decrease in real interest rates, current geopolitical issues, and other elements. However, they have not specified when this forecast will be realized.

If the resistance level of $2010 is surpassed, gold prices could potentially reach the range of $2060–2080 per ounce. If the resistance level of $2080 is broken, gold prices could even increase further.

Goldman Sachs is quite hopeful about gold's future. They anticipate that the S&P GSCI Commodity Index, which follows the prices of gold and other commodities (mainly oil), will increase by 21% in the next 12 months.

It is anticipated that Commerzbank will initiate the first rate cut in the middle of 2021, and this is likely to cause the price of gold to remain above $2,000 in the long-term.

The FxPro analyst team notes that, according to Fibonacci models, the next growth target for gold is $2130, which is 161.8% of the growth amplitude from the previous month. However, this pattern will only be realized in full if there is a confident breakdown of the local highs at $2010.