Amid rising tensions in the Middle East and concerns about a possible recession in European economies, the price of gold has gone up a lot in the last month.
Its value has increased by more than 10%, starting at $1,815 in early October and now sitting at around $2,000 per ounce. This is the highest it's been since May 2023.
What's really interesting is that this upward trend in gold might not be over yet.
A top expert from Bloomberg, Mike McGlone, thinks that the price of gold could even reach as high as $3,000 in 2024.
McGlone explains that despite a tough economic situation with a strong US dollar, a rebounding stock market, and high interest rates, gold has performed exceptionally well.
This suggests that gold might be on a solid path for further growth.
Additionally, if the predictions of a US recession by the end of 2023 turn out to be true, gold could get another boost.
McGlone points out that the decline in copper and other industrial metals is a sign of weakening global growth, which aligns with what Bloomberg Economics thinks will be the start of a US recession near the end of this year.
On the flip side, things don't look as good for riskier assets like stocks. Over the past two weeks, US stocks went through a big drop due to rising Treasury yields and political tensions.
An analyst and investor named Puru Saxena believes that the S&P 500 could face more challenges before it has a brief "relief rally" in the last part of 2023.
But this relief is expected to be short-lived, and the overall outlook for stocks isn't very positive.
Saxena thinks the bear market might continue until 2024 which is when it's expected to reach its lowest point.
