Gold’s explosive rally has stunned markets this year. Spot and Comex gold have breached $4,000 an ounce for the first time, marking a more than 50% surge year-to-date – the strongest rally since the 1970s.
Investor appetite is surging, with gold ETFs like SPDR seeing record inflows: $13 billion in the past month and $60 billion so far this year, according to the World Gold Council.
Still, David Neuhauser, CIO of Livermore Partners, believes the rally is far from over.
“Seeing gold trade somewhere around $6,000 an ounce is not so far away,” he told CNBC, citing macro instability and investor anxiety as key drivers.
Gold’s bull case: debasement, debt, and demand
Neuhauser attributes gold’s strength to what he calls the “debasement trade” – a growing distrust in fiscal and monetary policy.
“As economies become more polarized, debt becomes a major issue,” he said.
With central banks grappling with inflation and governments leaning on fiscal stimulus, gold is increasingly seen as a hedge against systemic risk.
Livermore Partners had forecast a $3,000 breach by 2025 – a milestone that was crossed months ago. Now, with gold at $4,000, the fund sees further upside.
“The poignancy is going to continue for a long time to come,” Neuhauser added, suggesting that the metal’s role as a safe haven is being reasserted amid global uncertainty.
Gold’s wildcard catalysts: AI euphoria and market fragility
Beyond macroeconomic fundamentals, Neuhauser points to the tech-driven equity boom as a potential accelerant for gold.
If there’s any issue as we build out that growth, where you see some of these companies start to retrench, then I think a market in turmoil will most likely lead to gold actually finding even more demand
The artificial intelligence (AI) trade has been red-hot, lifting tech stocks and fueling investor optimism.
But should that momentum falter, whether due to earnings disappointments, regulatory headwinds, or valuation resets, gold could benefit from a flight to safety.
In this scenario, Neuhauser sees a sharper, more volatile move toward $6,000 as plausible, not just possible.
What to expect from gold: a slow grind or a sudden spike
Whether gold’s path to $6,000 is a steady climb or a crisis-fueled sprint remains to be seen.
“It’s either going to be a slow grind as inflation stays relatively high and fiscal stimulus continues, or it’s going to be something else that’s going to unnerve the global economy,” Neuhauser explained.
For now, the metal’s momentum is undeniable, and investor flows suggest conviction is building.
As geopolitical tensions simmer and debt burdens swell, gold’s allure may only grow stronger. Delusion or destiny? The answer may lie not in gold itself, but in the fragility of the system it seeks to hedge.
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