Gold Price Forecast: $3000 and Climbing?

Should you be investing in gold stocks?  Are they the best stocks to buy right now?  With the price rising above an astonishing $3000 an ounce, are we seeing retail speculators jumping onto the gold train hoping to make their fortune?

Before you take that leap, during these troubling economic times, you might want to know for sure what supports and drives gold prices.  Right now, we have a wall of worry that’s driven by more than the Trump tariffs.  It’s a global insecurity issue, and the Trump tariffs certainly feed into how the world feels as the US withdraws its investment and free gift money to the world.

Investors will be eyeballing the best gold stocks to buy, and perhaps silver stocks too.

The Rocketing Price of Gold Bullion

How much more is gold worth today than ten years ago? In 2015, gold was worth $1100 dollars an ounce compared to the current price of gold which is $US 3,039.30 per troy ounce.   And it’s rising fast, up nearly 30% year to date.

So the price of gold might reflect how the world’s countries feel about the transition away from American dependency and into a new international business environment filled with tariff walls. Obviously, investors don’t good about the new reality. Because the price of gold has rocketed past US$3000 an ounce.

In the near future, people are considering “any case of turbulence in the economy,” FxPro senior market analyst Michel Saliby explained. “This is why they’re keeping a decent portion of gold in their portfolio as a ‘safe haven.’” — from AP news article.

Citi Research last week, raised its gold price target for the next three months to $3,200 per ounce from $3,000, citing robust official sector demand and higher exchange-traded-fund demand. “In our bull case, we see gold prices reaching $3,500 per ounce by year-end, underpinned by much higher hedging/investment demand on fears of US hard landing/stagflation,” analysts at Citi said in a note.

It takes time to change economists, analysts and investors views.  Consider Statista’s gold price projections:

Economic insecurity has always driven the price of gold, and the world is in an insecure place right now. The SPDR Gold Shares (GLD) exchange-traded fund (Gold ETF) reached a new high this week.

What is Causing the Price of Gold to Rise?

• • Monetary Policy and Interest Rates: The U.S. Federal Reserve is suggesting a couple of potential FED interest rate cuts might happen in 2025, which can weaken the dollar and make gold more attractive as a safe, non-yielding asset.
  • Geopolitical Tensions: Ongoing geopolitical uncertainties, such as conflicts in the Middle East, have heightened demand for gold as a safe-haven asset.
  • Trade Policies and Economic Concerns: Trade tensions and import tariffs have raised fears of inflation and economic slowdown, prompting investors to turn to gold as a hedge.
  • Central Bank Demand: Increased gold purchases by the globe’s central banks have bolstered demand, contributing to higher prices.
  • Investor Behavior: A shift in investment preferences, particularly among younger investors, from traditional assets to alternatives like gold has also played a role in driving up prices.
  • Hyperinflation: Gold spikes have happened just before major stock market crashes, as insecure investors bought as a hedge against a coming recession.
  • Price Speculation: Institutional and retail investor’s euphoric investing impulse sees gold stocks, gold ETFs and gold itself as a way to get rich.

Given most world currencies have flattened vs the US dollar, gold is even more valuable for them in their chosen currency.

Tom Lydon, CEO of ETF Trends stated that Gold supply is declining and mining is more expensive, which helps drive the price of Gold higher. And Ben Carlson, director of institutional asset management at Ritholtz Wealth Management believes a low US dollar can juice up the price of gold.

So is the upside really good this time to buy gold, gold etfs, or good miner stocks?

We’ve all heard the recommendations of Kitco and others to buy gold, and during its flat price period we all yawned in response. It takes a lot to raise the price of gold in the technology era, where gold seems to have little value at all. But the perfect storm has arrived. The question for investors now, is “Should I still buy gold stocks?”  Is the price peaking or is economic security growing globally.

The Trump tariffs aren’t acknowledged as a factor, yet the timing of the extreme growth is suspicious.

Barchart’s List of Best Gold Stocks to Buy

It might be smaller gold companies that have the best potential price appreciation. Ssr Mining Inc, Kinross Gold, Silvercrest Metals are hot over the last 12 months, while Anglogold Ashanti, B2Gold Corp, and Iamgold Corp are hot of late.  Silver stocks might also be worth reviewing.

NerdWallet using Finviz data is liking these gold stock picks:

It may not be US buyers that are fervent about gold, but the rest of the world, including Chinese and Japanese investors, it might look really good.

Is the Stock Market in a Bubble?

The US stock market forecast is positive based on a solid US economy, however Trump’s tariff actions are creating a deeper transition period. That transition could be severe if he chooses the stay the current course. If the Tariffs aren’t eased by summer, then it stands to reason that Gold prices will stay on their record-high course. The reciprocal tariffs will kick in on April 2nd, and it’s unlikely foreign countries will eliminate their US import tariffs, so we’re in for a trade war.   Further, some countries will increase their tariffs on US products to worsen the situation. Although the US economy will improve without the severe trade imbalances and US debt worries, the global economy is in for a world of hurt.

The DOW, S&P, and NASDAQ have all hit new records. Copper, Silver and other metals are hot commodities too, which is why silver stocks are so strong currently.

Is the US stock market bubbled up?  2025’s forecast projections are positive for the US economy, and valuations on stocks have fallen into investible territory.  Some are calling the bottom right now.

Find out more on which equities might be the best stocks to buy right now.

 * Note: review Gold companies thoroughly for production output, management team, reputation, price history, dividends paid, and do a current Price to Net Asset Value (P/NAV) ratio. Net Asset Value (NAV) is the value of a company’s assets minus its liabilities. See more at Orbeca.

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