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Gold to Hit $4,800: US Debt Fuels Bullion Rally
8 Nov
Summary
- Gold prices are projected to reach $4,800 by next Samvat.
- Rising US government debt is a primary driver for gold's ascent.
- Silver is expected to rebound significantly, crude oil prices may fall.
Gold prices are anticipated to climb to $4,800 by the next Samvat, fueled by increasing US government debt and sustained central bank acquisitions, as forecasted by Kunal Shah, Vice President and Head of Commodities Research at Nirmal Bang Securities. Investors might find this precious metal an appealing option amid growing global instability.
The bullish forecast for gold is substantially supported by the rapid expansion of US government debt, which has seen significant increases over the past three years and continues to grow. This fiscal expansion is complemented by liquidity injections into the market.
Silver is also projected to recover, with estimates suggesting prices could reach $70-$75 by next Samvat, a notable increase from current levels. Conversely, crude oil prices are expected to stay low or decline further. Previously anticipated surges to $130-$140 per barrel have receded, partly due to a diminished geopolitical risk premium and potentially reduced political influence impacting global energy markets.
