Gold prices might rise all-time highs and hit $2,500

Gold prices may soon reach a record $2,500 per ounce. Market analysts believe that due to global economic instability and geopolitical tension, the upward demand for safe investment options will play an influential role in this regard, Mark Newton, Managing Director & Global Head of Technical Strategy at Fundstrat Global Advisors said.

In the past couple of weeks, gold futures have surged 3% and briefly breached a key psychological threshold of $2,000 per ounce on Tuesday.

"This is quite positive technically, and I expect that gold has begun its push back to new all-time highs," Newton wrote, adding that a move above $2,009.41 should lead to the $2,060-$2,080 range.

In follow-up comments he said a breach of resistance at $2,080 would signal a "definite technical breakout," which he expects to happen and quickly drive gold even higher.

To be sure, different datasets have different record highs for gold, but they all go back to 2020. According to Dow Jones Market Data, the intraday high is $2,089.20. For Refinitiv, it's $2,072.50, while Bloomberg puts it at $2,075.47.

Either way, Newton sees gold prices eventually blowing well beyond those figures.

"My technical target for gold is $2500/oz, and it looks appealing to be long precious metals given falling real rates, rising cycles and ongoing geopolitical conflict," he wrote in his note.

He later clarified that his timeline for $2,500 isn't necessarily for the end of the year but is an "intermediate target."