As the aftershocks of the epidemic continue to impact the global supply chain, prices of a series of commodities from aluminum to natural gas have skyrocketed one after another, and in the eyes of some precious metal industry professionals, the next explosive increase may be gold.

Optimistic outlook for gold

Professionals expect investors to soon realize that global inflationary pressures will not be temporary as shown by central bank officials and the CPI index, but will become more severe.

Gold is often considered as an inflation hedge tool. When people realize this, the attractiveness of gold as a hedge against inflation may push prices from around $1800 per ounce to $3000 in just a few months.

It is worth mentioning that gold industry personnel are optimistic about the outlook for gold, which is not surprising, but they usually do not recklessly predict such a significant increase in gold prices in such a short period of time.

Professionals say that if the trends of other metals can be referenced, once gold prices sound a similar rally signal, its rise will also be dramatic. He pointed out, "When all of this really happens, people's reactions are often stressful and intense. That's why I am very confident that gold prices will reach $3000 per ounce in a few months rather than years

The global monetary and debt expansion in response to the pandemic, as well as secondary drivers related to supply chain disruptions, will ultimately shift people towards traditional wealth preservation methods. A professional said, "Not only the US dollar, but all currencies have lower purchasing power than a year ago. This unprecedented phenomenon will affect the value of fiat currencies around the world. The universality of gold and its 4000 year history mean that it is more suitable for hedging against inflation than cryptocurrencies, which will have a profound and meaningful impact on our capital

Gold Innovation High

The international gold price rose for the second consecutive week last week, and hit a one and a half month high of $1813 per ounce in mid day trading last Friday. In the past week, rising inflationary pressures have pushed the breakeven inflation rate of US five-year inflation protected bonds to its highest level in more than a decade.

However, although many gold mining giants are now optimistic about the prospects for gold, there are also some market participants who are still relatively cautious. Analysts said, "Although the low price of gold continues to rise and we are preparing to test $1800 again, it may be difficult to maintain momentum above $1800. Recently, when gold has seen a strong rise, most of the capital flow seems to be dominated by fast money seeking momentum. For gold, unfortunately, when there are any signs of trouble, these funds will immediately run away