Gold Price Forecast: Gold Targets $3,000 Amid Rising Economic Uncertainty

The level of disruption taking place at the federal level under Trump 2.0 is progressing much faster than anyone anticipated.

Uncertainty is rising over tariffs, revelations of fraud within USAID, and the renewed "Maximum Pressure" campaign against Iran.

There's a strong possibility that capital is rotating away from mega-cap tech into other sectors. Gold tends to thrive when uncertainty rises.

Capital Rotation

In a recent note to clients, Michael Hartnett of BofA highlighted that cash on the sidelines isn't flowing into tech as expected. Instead, he believes it’s moving into bullion and bonds. The recent surge in precious metals and mining stocks could be just the beginning if he's right.

Technical Update

GOLD MONTHLY: Gold confirmed the start of a new bull market in 2024 that could last anywhere from 5 to 10 years. Like the major breakout in 2006, which permanently left the $500 level behind, sub-$ $2,000 gold may never be seen again.

SILVER WEEKLY: Silver held support near $29.00 in late December, and it looks like we have a successful backtest of that area. Upside through above $35.00 would confirm a significant breakout that could take prices back to $40.00+. The faster prices get above $35.00, the more bullish I'll become.

PLATINUM: Platinum has built a 17-year descending wedge pattern, and prices have another opportunity to break out. A sustained rally above $1,100 with upside follow-through above $1,200 would support a major breakout event.

GDX: Miners are just 6.50% from making fresh multi-year highs. Michael Hartnett believes cash on the sidelines is NOT going into tech like years past, but rather into bullion and bonds. If he's right, GDX could experience a major repricing in 2025. That means once prices break through $44.00, they could accelerate to the upside.

GDXJ: Gold juniors are just 5.50% away from their October highs but still require a 20% gain to match the peak from 2020. If gold miners are undergoing a major repricing event, the current rally could be just the beginning of a major advance.

SILJ: Silver juniors are above the 200-day MA and now need progressive closes above $11.88 to promote a breakout.

AEM: Agnico Eagle has been one of the best-performing gold miners. Prices made fresh highs last year and consolidated above $75.00 during the recent correction. The current move looks like a breakaway event. To estimate a measuring target, I add the depth of the 4-year consolidation to the top of the pattern. In this case, we have a price target near $150.

NEM: I'm watching Newmont closely. If big money is entering the space, I'd expect to see Newmont participate in the leadership to the upside. Getting and then staying above the 200-day MA ($45.00) is crucial for the bullish narrative.

Summary

Gold is entering its second year of a new bull market, one that could last the better part of a decade. Central bank buying is set to increase, implying that sub-$2000 gold may be a thing of the past. Silver typically lags at the start of a bull market, making 2025 a potential year for a significant catch-up. Platinum is on the verge of breaking out from a 17-year downtrend. A capital rotation event into bullion and bonds, as suggested by Michael Hartnett, could trigger a major repricing of gold miners, pushing prices much higher and quickly.

For more price predictions and daily market commentary, consider subscribing at https://goldpredict.com/membership-account/membership-levels. AG Thorson is a registered CMT and an expert in technical analysis.

********