Fundstrat’s Mark Newton suggests that investors might want to turn their attention to gold, which is on the verge of hitting record highs. Gold futures have recently seen a 3% increase, briefly surpassing the significant $2,000 per ounce mark, sparking optimism among investors and analysts.
In a recent note, Newton pointed out the technical significance of this surge. Tuesday’s climb to the highest daily close of November, and any further rise above $2,006.37 per ounce this week, would mark the highest weekly close since spring. “This is quite positive technically, and I expect that gold has begun its pushback to new all-time highs,” Newton stated, predicting a potential move into the $2,060-$2,080 range.
Newton elaborated on his analysis. A breach of the $2,080 resistance level would signify a “definite technical breakout,” he believes. Such a breakout is anticipated by Newton, who foresees it propelling gold prices even higher in a swift motion.
Record high figures for gold, dating back to 2020, vary depending on the dataset. Dow Jones Market Data cites an intraday high of $2,089.20, while Refinitiv and Bloomberg record it at $2,072.50 and $2,075.47, respectively. Regardless of these variations, Newton is confident that gold prices will soar well beyond these previous peaks.
“My technical target for gold is $2,500/oz, and it looks appealing to be long precious metals given falling real rates, rising cycles, and ongoing geopolitical conflict,” Newton wrote. He later clarified that his $2,500 target is an intermediate goal, rather than a year-end prediction.
For investors and market enthusiasts, Newton’s analysis offers a compelling case for considering gold as a valuable addition to their portfolios. Amid fluctuating economic conditions and geopolitical tensions, gold’s traditional role as a safe haven asset seems to be solidifying, presenting a golden opportunity for those looking to diversify their investments.