Gold’s Glittering Ascent: Will It Hit $4,000? 💰✨

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What to know:

  • Gold has recently decided to throw a lavish party, surpassing $3,000, with Gundlach predicting it might just waltz up to $4,000. 💃
  • Gold-backed cryptocurrencies are strutting their stuff, outshining bitcoin and the rest of the crypto crowd. Talk about a glow-up! 🌟
  • Central banks are hoarding gold like it’s the latest designer handbag, reversing a long-standing trend of decline. 👜

Gold, darling, has been on a splendid jaunt, surpassing the $3,000 mark for the first time last week. Now, whispers of even more extravagant heights for this precious metal are in the air. 🎉

Enter Jeffrey Gundlach, the “Bond King” himself, who, with all the flair of a seasoned performer, believes this rally is merely the opening act, with a potential encore at $4,000. Bravo! 👏

During a rather cheekily titled macroeconomic outlook presentation, “Not in My Neighborhood,” Gundlach showcased gold’s fabulous price momentum alongside its commodity companions. Cryptocurrencies, like PAXG and XAUT, are basking in the limelight of this historic price rise. 🌈

“I think gold will make it to $4,000. I’m not sure that’ll happen this year, but I feel like that’s the measured move anticipated by the long consolidation at around $1,800 on gold,” Gundlach quipped, with a twinkle in his eye. ✨

Gold-backed cryptocurrencies have been stealing the show this year, outperforming the wider cryptocurrency market. While PAXG and XAUT are up a delightful 14% year-to-date, bitcoin has taken a rather unfortunate tumble of 11.4%. Oops! 😬

His predictions are rooted in the shifting strategies of central banks, who are now increasing their gold reserves like it’s going out of style. According to the IMF data Gundlach presented, the total amount of gold held globally has climbed from a low of around 34 billion Special Drawing Rights (SDR) in 2010 to a dazzling 40.9 billion SDR, reaching levels last seen in the disco era of 1975 to 1980. 🕺

And what, pray tell, are Special Drawing Rights? They’re an international reserve asset the IMF created back in 1969, defined through a rather posh basket of currencies. 🥂

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2025-03-18 00:55