Fundstrat: "Gold price is headed for new historic highs"

The price of gold is headed for new all-time highs, according to Business Insider, Mark Newton, Managing Director/Global Head of Technical Strategy of the market analysis and strategy firm Fundstrat.

Recently, gold futures briefly broke the psychological threshold of $2,000 an ounce, and a close above $2,006 would take the price of the yellow metal to its highest level since spring.

"It's a pretty positive technical signal and I think gold has started its journey to new all-time highs," the analyst wrote in a note, adding that a move above $2,009 an ounce should take gold prices into the range 2,060 - 2,080 dollars.

A break above the $2,080 resistance would signal a "clear technical breakout," according to analyst Fundstrat, who expects gold to break through this threshold, which will quickly push the price even higher.

Gold's all-time high differs by data provider, but in all cases the record is from the summer of 2020. Dow Jones Market Data indicates an intraday high of $2,089.2 an ounce, according to Refinitiv the record was $2,072.5 , while Bloomberg data shows a maximum of $2,075.47, according to the American publication.

Newton believes that eventually the price of gold will far exceed these levels. "My technical target for gold is $2,500/oz. The outlook for precious metals looks attractive given falling real rates (n.a. interest rates), growth cycles (n.a. metals) and geopolitical conflict," the analyst wrote, quoted by Business Insider, adding that there was no price target. for the end of the year, but it is an "intermediate objective".

Around midday yesterday, December gold futures were trading at around $1,994 an ounce on ICE, according to Investing.com data.