In an early September Barchart article, I explored the question of how high gold can rise. I highlighted the potential for gold to continue its upward trend due to market sentiment and the decline of fiat currency values. Gold’s unique position as a hybrid asset between a means of exchange and a raw material has tempered its volatility but has not stopped its price from soaring to new heights. It’s important to respect the bullish trend of gold, which was evident in September 2024.
Since then, gold has surged to record highs, surpassing $2,700 per ounce. The impact of inflation suggests that there could be even more room for gold to rise.
New highs in gold
Gold hit a new peak in September 2024, reaching a record high. The chart dating back to the mid-1970s shows gold’s latest record high of $2,708.70 per ounce. The bullish trend has remained intact, with the price hovering around the $2,700 level in October.
The nominal 1980 high adjusted for inflation takes gold to even higher highs
The chart and calculator reveal that when adjusted for inflation, the 1980 peak of $875 per ounce translates to over $3,340 per ounce in 2024. With gold in uncharted territory, the inflation-sensitive price could set the stage for further upside potential.
Geopolitics and economics create a bullish landscape
The current economic and geopolitical landscape, including wars, inflation, employment dynamics, and political uncertainty, has fueled a bullish environment for gold. Uncertainty tends to drive investors towards safe-haven assets like gold.
Buying on dips has been optimal
While gold has seen significant gains over the years, it has not been a smooth upward trajectory. Dips in the market have provided optimal buying opportunities, as seen in the series of downside corrections over the past two decades.
GLD is the most liquid gold ETF, but IAU and BAR also do the trick
Investors looking to capitalize on the bullish trend in gold have options like the Gold SPDR (GLD), iShares Gold Trust (IAU), and GraniteShares Gold Trust (BAR). These ETFs track gold prices effectively and offer opportunities to participate in the upward movement of gold prices despite potential corrections along the way.
