In 2022, this scenario played out, with gold initially recording highs; however, it has since fallen off and, at the time of writing, is trading at $1,787.91 an ounce. Nevertheless, senior commodity strategist at Bloomberg Intelligence, Mike McGlone, tweeted on August 4 that it’s just ‘a matter of time’ before gold hits the $2,000 level due to limited production versus the unlimited production of fiat currencies.
Currency trend
McGlone further elaborated that it takes time for the precious metal price to reflect the gains it sees in other foreign currencies, like the gain it has seen in the Euro currency.
Technical analysis
Moreover, from the technical analysis side, McGlone expressed his view the metal price is being restrained by the aggressive rate tightening by the Federal Reserve (Fed). He concluded: According to the commodity expert, the run-up gold has had in 2022 is just the beginning. With the logic of finite supply behind it and a technical setup indicating a boom in price, it seems as if the next leg up in gold price could be inevitable. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
