Could a new bullish phase be on the horizon for gold as it reaches yet another record high?

• Sprott Asset Management's market strategist, Paul Wong, stated that gold is currently experiencing a "new bullish phase" due to various factors such as central bank buying, increasing U.S. debt, and a possible U.S. dollar peak.
• The price of gold reached a new record high of $2,700 per ounce, prompting his comments.
• Some analysts predict that the price of gold will increase to new records, with expectations of reaching $2,800 in the next three months.

Sprott Asset Management stated that gold is currently experiencing a "new bullish phase" following another record high in prices, a sentiment shared by other analysts who predict the bullion will continue to reach new heights.

According to Paul Wong, market strategist at Sprott Asset Management, gold has entered a new bullish phase due to central bank buying, rising U.S. debt, and a potential peak in the U.S. dollar. The price of gold reached a fresh record of $2,700 per ounce on Monday.

Currently, an ounce of gold is trading at $2,729.14, while silver is at $2,741.20.

Historically, higher gold prices have been linked to rising U.S. debt-to-GDP ratios, as investors express concerns about the sustainability of debt, currency devaluation, and debt monetization, Wong explained.

In 2053, the public debt in the U.S. is projected to reach 181% of GDP, surpassing the previous record.

Fiat currency devaluation can increase the appeal of gold as a reliable store of value, as governments may resort to printing money to address deficits, Wong explained.

Due to ongoing inflationary pressures and challenging macroeconomic conditions, central banks and investors may turn to precious metals for allocation, according to the expert.

In the first half of 2024, central banks purchased a total of 483 tonnes of gold, which was 5% higher than the previous record set in the first half of 2023, according to data from the World Gold Council.

Some analysts predict that the price of gold will increase to $3,000 in the future, with others anticipating it to surpass $2,800 in the next three months.

Gold prices are "looking better" than ever before, according to Michael Widmer, commodities strategist at Bank of America. He believes we are "closer to $3,000 pounds."

Government debt levels and geopolitical uncertainty are the reasons for Widmer's bullish outlook.

The ongoing conflict in the Middle East remains unresolved due to pledges from Israel, Hamas, and Hezbollah to continue fighting in Gaza and Lebanon.

Safe-haven assets such as gold are often sought by investors during times of increasing geopolitical tensions, as they seek to protect themselves from market instability and risks.

Gold will hit $3,000 in the next six to nine months, according to Citi analysts. If oil prices spike due to a near-term escalation in the Middle East, gold should see a lift, they added.

Although Chinese retail demand for gold has decreased over the past three months, gold prices have remained strong, indicating that buyers are willing to pay higher prices, as stated by Citi.

Vivek Dhar, Commonwealth Bank of Australia's Vivek Dhar, predicts that gold will average $3,000 in the fourth quarter of next year due to persistent weakness in the U.S. dollar.

Citi recently upgraded their view, predicting that gold will hit $2,800 in three months, while Dhar also expects gold to average $2,800 this quarter.