LIVE MARKETS-Gold could surge to over $4,000/oz in bull scenario - WisdomTree

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GOLD COULD SURGE TO OVER $4,000/OZ IN BULL SCENARIO - WISDOMTREE

Gold surged to a record high last month of $3,500/oz, and although it has pared some of its recent gains, WisdomTree believes significant new highs remain in view.

"Gold is likely to continue rising as erratic US trade policy continues to unnerve investors, driving them to the safe haven," writes Nitesh Shah, head of commodities and macroeconomic research at WisdomTree.

The ETF provider says under their consensus view - which may be conservative as it doesn't take in the full effect of the tariff shock - gold could rise to $3,610/oz, implying a more than 10% rise from its current level.

In its bull case, with a large inflation overshoot, much weaker dollar and possible bond yield compression, gold could reach $4,210/oz by Q1 2026, WisdomTree says, implying an almost 30% rise from here.

"We certainly think that speculative demand for gold should remain high with rising risks of recession and inflation," Shah writes.

"It does not feel like a stretch of the imagination to see a further $1000/oz added to today's price to get to over $4,000/oz."

(Samuel Indyk)

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