Market Expert Foresees 50% Upside for Gold by End-2025

SEATTLE (Scrap Monster): Gold could hit as high as $3,500 per ounce before the end of the next year, said market veteran Ed Yardeni. The prices could hit those levels, if inflation surges to even higher levels. The projected price implies an upside of nearly 50% from the current levels.

According to Ed, President, Yardeni Research, gold prices are seen soaring in a new high territory. The inflation could follow the path it did in the 1970s, which sent gold prices soaring from $35 per ounce to a peak of $665 per ounce. Under the current scenario, gold prices of $3,000-$3,500 per ounce looks realistic, he said.

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It must be noted that several economists have warned of a second peak in inflation. Yardeni foresees 20% chance for such a scenario. The consumer prices had cooled off significantly during 2022. The market participants expect higher inflation, mainly driven by resilient U.S. labor market and supply chain disruptions on account of rising geopolitical tensions. The recent surge in crude oil prices too are likely to exacerbate inflationary pressures.

Yardeni is not the only market expert who expects more upside to gold prices in the upcoming years. Leading economist David Rosenberg had recently forecast 30% upside for gold prices, driven by risks on account of anticipated rate cuts by Fed and rising geopolitical tensions.