Yardeni Research Predicts Gold Could Hit $10,000 as Rally Accelerates
Gold prices could surge to $10,000 per ounce by the end of the decade — or even sooner — if the current rally continues, according to a new outlook from Yardeni Research.
On Wednesday, spot gold broke above $4,200 per ounce for the first time, fueled by renewed U.S.-China trade tensions and expectations of imminent Federal Reserve rate cuts. The strong safe-haven demand has driven investors toward bullion amid global uncertainty.
At 06:09 ET (10:09 GMT), spot gold traded 1.3% higher at $4,197.04/oz, after reaching a record high of $4,200.11 earlier in the session. U.S. December Gold Futures also climbed 1.2% to $4,213.54/oz.
Gold has now gained for eight consecutive weeks and is on track for another weekly advance. Analysts at Yardeni Research believe the metal could reach $5,000 per ounce next year if the momentum continues.
Fed Comments Spark Further Momentum
The latest rally gathered speed after Federal Reserve Chair Jerome Powell made dovish remarks on Tuesday.
Powell said the U.S. economy remains on a firmer footing than expected but warned of a softening labor market. He emphasized that policy decisions will continue to be made “meeting by meeting,” and that there is “no risk-free path” ahead for the Fed.
His comments boosted expectations of rate cuts in October and December, sending U.S. Treasury yields lower and weakening the U.S. dollar — both of which support gold’s upward trajectory.
Trade Tensions Add Fuel to Gold’s Rally
Adding to the bullish sentiment were renewed trade tensions between the U.S. and China. President Donald Trump recently suggested ending certain trade ties, particularly in cooking oil imports, after accusing Beijing of reducing purchases of U.S. soybeans.
Both nations also introduced reciprocal port fees on shipping firms, intensifying their ongoing tariff dispute and adding to investor unease.
In a note, Yardeni strategists wrote:
“Investors seeking protection from mounting geopolitical risks have been heading for the hills to mine for gold.”
Gold vs. Bitcoin: The Search for Safe Havens
Yardeni Research added that the current uncertainty has increased gold’s appeal over riskier assets like Bitcoin.
“Risk-off investors may increasingly view gold as a better protection against geopolitical risks than Bitcoin,” they noted. “Gold has served as a historical hedge for centuries, while Bitcoin remains a speculative, risk-on asset.”
As volatility rises, analysts expect more investors to shift from crypto to gold, strengthening the case for a long-term bullish trend in the precious metal.
