Paul L.
Bloomberg Senior Commodity Strategist Mike McGlone is forecasting that gold could target another record high as the yellow metal seeks to establish its value above the $3,000 mark.
According to McGlone, gold’s next target lies at $4,000 and could be influenced by falling risk asset prices, declining Treasury yields, and increasing global economic uncertainty, he said in an X post on March 21.
McGlone noted that gold has the potential to rally further if United States Treasury yields decline. Currently hovering around 4%, Treasuries may face downward pressure, especially compared to government bond yields in China and Japan, which remain below 2%.
The expert added that this discrepancy could drive investors toward alternative investment assets such as gold, which historically benefits from lower real interest rates.
On the other hand, the precious metal’s safe-haven attribute could prove valuable if the stock market registers new lows. Although the market ended the last trading session on a high note, overall sentiment remains bearish as uncertainty surrounding President Donald Trump’s tariffs continues to weigh on investors.
Based on McGlone’s outlook, investors will likely turn defensive if equities sustain further losses. In this scenario, gold is likely to be the go-to asset for wealth preservation due to its store-of-value status.
Meanwhile, the strategist also noted that if risk assets such as cryptocurrencies remain bearish, there could be a capital shift to gold, helping propel the metal toward the $4,000 mark.
As reported by Finbold, McGlone has suggested that if the outflow from risk assets such as Bitcoin (BTC) is sustainable, the digital currency could drop to $10,000. At present, Bitcoin remains in consolidation below the $90,000 level.
Gold price analysis
Gold has paused its recent momentum after reaching the highly anticipated $3,000 mark. As of press time, the commodity was valued at $3,023, down 0.68% for the day. However, over the past week, the metal has rallied 1.2%.
Notably, gold’s slowed momentum was partly triggered by the latest Federal Reserve interest rate decision, in which the institution opted to maintain current rates.
From a technical perspective, trading expert Aksel Kibar noted in an X post on March 21 that gold is currently testing resistance at the upper boundary of its rising channel, just above the $3,000 mark.
His analysis observed that after breaking past $2,070 and $2,240, the metal remains in a strong uptrend, supported by its 200-day moving average (MA). If resistance holds, a pullback to $2,500 is possible. However, a breakout could push gold to new highs.
Overall, sentiment around gold remains bullish, driven by geopolitical tensions, including the conflict in Gaza, and ongoing economic uncertainty.
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