Gold's Breakout Has Just Begun! Analysts Predict a Target Price of $4000

Over the past few months, the gold price has been consolidating between $3,200 and $3,400 per ounce, frustrating many investors in this market. However, recently, the gold price broke through the upside resistance, repeatedly setting new highs.

Analysts generally believe that gold's strong performance since last week is related to the shift in the Federal Reserve's monetary policy. Schneider further explained that Powell indicated to the market that he is not overly concerned about inflation falling back to 2%; he is now more focused on the economic slowdown and the labor market.

This change means the Fed is no longer focused on inflation, which instead has heightened concerns about the US dollar's purchasing power. She pointed out that global investors and sovereign nations seem to be losing confidence in the US dollar, turning to gold instead, which will reshape its status as the world currency.

On Wednesday, gold continued its strong rally,刷新歷史新高 (reaching a new record high) of $3616. The current spot price of New York gold is around $3606. Besides the push from increased probability of Fed rate cuts, this wave of movement is also related to legal challenges against the Trump administration's tariff policies.

Ilya Spivak, Global Head of Macro at Tastylive, said that the US Supreme Court's ruling could bring a lot of uncertainty to the market. If the ruling goes against Trump's wishes, it could completely alter the global macroeconomic landscape.

Schneider emphasized that there is now widespread disbelief that the Fed will take necessary action, and also disbelief that the Trump administration knows what it is doing. Investors are flocking to gold due to pervasive concerns about the US fiat currency.

She also predicted that silver's performance will surpass gold's this year. The key lies in the gold-silver ratio, which is expected to fall below 80, driving the silver price above $50 per ounce to set a new historical high.