Kitco News: 4 Major Catalysts That Will Push Gold Above $3,000

Gold prices continue to trend higher, with the metal moving over $2,400 in the past few days. Gold is now up over $600 per ounce in the past few months.

The trend looks likely to continue, which should push the metal as high as $3,000 per ounce. Several factors are at play that bode well for higher gold prices, and investors still have an opportunity to profit from this move in the metal.

The first major catalyst behind gold’s move is soaring debt and debt costs. The U.S. government has managed to grow its deficit by nearly $1 trillion every 100 days. That’s thanks to having the largest peacetime deficits in history.

Meanwhile, that debt comes with a higher interest rate cost than in previous years. Rather than issuing debt near 0%, it’s at 5% or more.

Consumers have also added to their debt levels. Since the pandemic, consumer debt has grown by $3.4 trillion.

Next, gold demand remains strong. Overall global demand rose 3% year-over-year, to 1,238 tons in the first quarter of 2024. That’s the strongest first-quarter performance since 2016.

Central banks remain big net buyers of gold. But coin and bar demand is also up 3%, indicating retail investors remain interested in the metal. Buying gold allows banks and individuals to get out of any currency, even the dollar.

To view the other two catalysts pushing gold to $3,000 per ounce, click here.