Longtime Kitco commentator Jim Wykoff describes three trends in his column that lead him to predict that the price of gold will reach and exceed $2000 per ounce in the coming years. These trends are briefly outlined below.
Goldman Sachs commodity index at its highest in years
The chart below shows that Goldman’s commodity index is at its highest in four years, and the trend over the past two years is upward. This supports Wykoff's view of a rise in the commodity sector in the coming months or even longer:
"Commodity markets operate cyclically, and in my view, they are now transitioning into a years-long upward cycle. This will produce new price records in the commodity markets."
Lumber futures at record highs
According to the monthly chart below, lumber futures prices appear to have climbed to record highs, and Wykoff notes that there are no early signs of a reversal in the price of this important building material:
"Consumer and producer price inflation globally is creeping upward after a long period of stagnation. If price inflation continues to heat up, the rise in commodity prices will also intensify."
Development of lumber futures prices
Gold futures prices on a long-term upward trend
Recent Comex gold futures show a budding upward trend on the monthly chart. Interpreting the chart, and if the trend continues, gold will reach a new price record in 2027 and the $2000 price threshold per ounce in 2028.
"My view, however, is that the upward trend in gold prices will accelerate in the coming years in the same way as it did during the last major jump in 2011. If this happens, a new record in gold prices could be seen much earlier."
Gold futures price development
Summary and images from the article My Case for Gold Hitting a Record High Above $2,000
