Gold price forecast: Further increase up to 2100 US dollars likely - financial expert explains background

Gold price forecast: Further increase up to 2100 US dollars likely - financial expert explains background

According to a report by www.wallstreet-online.de, the price of gold has defended the $1,800 mark and continues to rise, with the $2,100 mark in sight. This tipping point can be crucial, as there are extremely many bets for falling prices in the options market at $2000 and $2100. With the December settlement date approaching, option writers are coming under pressure as they face unlimited risk of loss if the underlying value rises upwards. This leads to a steep price increase when writers buy the future itself at a certain point to control their risk of losses. $2,100 is a significant mark, and if gold makes a significant breakthrough, $2,500 and the start of a multi-year bull run are likely.

What is exciting in the current situation is that the bottom is forming at a high level and within sight of the all-time high. If gold breaks out of the 2050-2100 resistance zone, a significant increase in the price of the precious metal would already be likely during this transition phase. A 3.5-year rally is expected from 2026, because then the next bull cycle in the great gold cycle begins.

As an economist, it is important to mention that increasing demand for gold will impact the market. A rising gold price may lead to increased production costs in the jewelry and electronics industries, which in turn could affect retail prices. In addition, a rising gold price can also have an impact on currencies and financial markets, as gold is often viewed as a safe haven in economically uncertain times.

It is crucial to monitor changing market conditions and adapt strategies accordingly to benefit from developments.