Gold price could hit $3,500 in two years

“I’m looking for $3,500 within two years,” Dawes told CNBC’s “Street Signs Asia.” He said some consolidation is “probable,” but the underlying strength of the rally is “very significant.”

Garth Bregman of BNP Paribas Wealth Management predicted that prices could consolidate around $2,000, before increasing again.

“We don’t see any catalyst in the short term for gold to stop its rise. In fact, the factors that have driven gold to these new highs are still very much in place,” said Bregman who is the Asia Pacific head of investment services.

Juerg Kiener, managing director of Swiss Asia Capital, is also bullish on the precious metal.

“If you look at the technical picture, you could actually take this gap from the bottom up and going to the top, that gives you about $2,834 and that would be (an) initial target probably that you could achieve quite fast,” he said.

Historically, he pointed out that gold prices have moved seven or eight times higher from their bottoms.

“If your bottom structure was $1,050, times seven, that will give you about $8,000,” he said.

“I think my longer term targets are significantly higher,” he told “Capital Connection.”

Kiener said gold is offering “significantly higher” returns in the next 12 months compared to the low returns on U.S. Treasuries.

“Basically, you have no more yield curve. The yield curve has been flattened to the extreme,” he said, noting that real yield returns are moving into negative territory in many countries. The yield on the benchmark 10-year Treasury note is currently at around 0.61%.

Source: CNBC, 2020-07-28, “Gold Prices Could Hit $3,500 in Two Years, Analyst Says”