Gold Could Reach $4,200 Before Any Major Correction, Says Analyst
Gold’s meteoric rise has shattered previous forecasts, vaulting past $4,000 per ounce in one of the fastest rallies in recent years.
Market veteran Gary Wagner, editor of TheGoldForecast.com, said the move has exceeded even his most optimistic expectations, calling the surge “almost unstoppable.”
Initially expecting gold to top out near $3,800, Wagner now sees the metal charging toward $4,100–$4,200 as investor demand for safe-haven assets intensifies. “Momentum like this doesn’t happen often,” he explained, adding that even if a correction occurs, it will likely be brief.
Gold’s Relentless Momentum
Since mid-August, gold has climbed from around $3,300 to above $4,000, marking one of its strongest multi-week performances in decades. Technical data shows consistent weekly gains, forming a string of green candlesticks on charts – a signal of enduring bullish pressure.
Still, Wagner cautioned that the current pace could trigger a short-term pullback. “We might see a deep but temporary correction before the next push higher,” he said. Despite this, the long-term outlook remains overwhelmingly positive, with traders continuing to buy dips amid global uncertainty.
The Safe-Haven Surge
Gold’s latest breakout has been fueled by the ongoing U.S. government shutdown, renewed geopolitical tensions, and fears of an AI-driven stock bubble. As risk assets wobble, investors have rotated heavily into commodities seen as stable stores of value.
Momentum indicators like the Relative Strength Index (RSI) suggest that gold is nearing overbought territory, yet that hasn’t slowed Wall Street’s enthusiasm. Many analysts argue that structural tailwinds – including persistent inflation, policy uncertainty, and rising sovereign debt – could sustain gold’s dominance well into 2026.
The metal closed its last session at $4,016 per ounce, up 53% year-to-date, underscoring its position as one of the most resilient assets of the year.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
