About a week after the chatter around gold began to pick up on Stocktwits, the shiny metal is hitting new all-time highs. But still, some are perplexed as to why it’s rallying. 🤔
Bears argue that gold should not be rallying in the current environment. After all, inflation continues to trend back toward the Fed’s 2% target, and the economy is holding up well thanks to a strong labor market and consumer spending. And with the risk-free rate still above 5%, some investors and traders argue there are better alternatives to gold and precious metals as a group.
Despite that pushback, prices continue to trend upward, with some analysts forecasting a rise to $2,500 and $3,000 in 2024. We’ll have to wait and see who is correct, but for now, bulls have the clear edge as prices close at their highest level ever. 🤩