Adam Hamilton, founder of Zeal Intelligence, anticipates a surge in gold prices as U.S. investors move away from stocks and the deflating artificial intelligence (AI) sector. He believes gold could reach $2,950 per ounce, pointing out that the metal has already experienced significant gains without these additional drivers, signaling a strong upward trend.
In an article on Mining.com, Hamilton highlighted that gold has risen by 38.7% over the past 11 months, hitting record highs despite lacking typical market catalysts. He attributes this bull market to strong demand from Chinese investors, central banks, and gold futures speculators. He predicts that demand will stay robust as stock markets falter and Chinese purchases of gold continue to climb.
Hamilton also pointed to the U.S. government’s rising debt and increasing Treasury interest costs, warning of a bleak future for the U.S. dollar. He emphasized gold’s value as a hedge against inflation and currency devaluation, asserting that even a small reallocation of stock market funds into gold could push prices past $2,950. However, he cautioned that it may take months or even years for stock investors to increase their gold exposure, even by a modest 1%.
Other analysts echo Hamilton’s bullish outlook. Goldman Sachs, for instance, recently projected that gold could hit $2,700 per ounce within the next year. This sentiment aligns with growing interest in gold as a safe haven in uncertain economic times.
While gold’s appeal is on the rise, retail investment hasn’t yet matched the activity in exchange-traded funds (ETFs). Analysts expect that as market conditions shift, both institutional and retail investors will increasingly turn to gold, further driving prices upward.
Overall, Hamilton’s predictions align with a growing consensus that gold is poised for further gains as investors seek stability amid stock market volatility and the cooling of the AI boom.
