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Gold Set to Hit $4,000 as Risk Assets Falter, Says Bloomberg’s Mike McGlone

The comments below are an edited and abridged synopsis of an article by Jeremy Szafron, KITCO

In a recent analysis, Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, forecasts that gold could rise to $4,000 per ounce as risk assets falter. This projection highlights gold’s role as a safe haven during times of economic uncertainty.

Gold Set to Hit $4,000 as Risk Assets Falter, Says Bloomberg’s Mike McGlone - BullionBuzz - BMG
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McGlone’s forecast is grounded in the current instability of financial markets. He notes that traditional risk assets, such as equities and cryptocurrencies, are showing signs of vulnerability. In contrast, gold has historically been viewed as a reliable store of value when other investments are volatile.

The strategist points to several factors driving this potential surge in the gold price. These include ongoing geopolitical tensions, fluctuating interest rates, and concerns over inflation. Such conditions typically push investors toward assets perceived as more stable, with gold being the prime example.

Furthermore, McGlone underscores the comparative performance of gold versus other commodities and financial instruments. He says that while assets like oil and stocks have been subject to significant volatility, gold has maintained a steadier course, further solidifying its appeal to risk-averse investors.

This anticipated rise in the gold price carries significant implications for both individual investors and the broader economy. For those looking to protect their portfolios from market downturns, increasing allocations to gold could shield against potential losses in other asset classes.

In summary, McGlone’s analysis suggests that as risk assets continue to show signs of instability, gold’s appeal as a safe haven will likely increase, potentially driving its price to historic highs. Investors and policymakers alike should keep a close watch on these developments, considering the wider economic implications of such a shift in asset valuations.