Chart of Day: Gold Prices Could Rally to Record Highs

Keep an eye on oversold gold prices.

One of the most powerful catalysts supporting gold is central-bank demand. In fact, central banks around the world bought another 63 tonnes of gold in September, marking the largest monthly buying since November 2024, according to the World Gold Council.

In August, they bought 39 tonnes of gold in August. With that, analysts project that gold prices will hit record highs within the next 12 to 18 months to two years, citing geopolitical conflicts, and economic uncertainty. In addition, gold could also benefit from concerns surrounding government spending, rising debt levels and the de-dollarization by some countries.

In addition, Greenlight Capital founder David Einhorn is bullish. As reported by GoldSilver.com, Einhorn believes gold could “significantly outperform” the Nasdaq over the next three to five years. His outlook is based partly on concerns about loose U.S. fiscal policy and the continuing global trend toward de-dollarization.

While investors can always buy physical gold, and even gold stocks, another solid way to profit from an increase in gold prices is with an ETF such as the iShares Gold Trust (IAU). The ETF offers a simple way to invest in gold without buying and storing bars or coins yourself. It holds physical gold and follows the gold metal’s price, minus expenses. Its annual fee is 0.25%, or about $25 for every $10,000 invested. 

About Author

Ian Cooper

Ian Cooper has helped individual investors navigate financial markets, identify opportunities, and manage risk since 1999. He has taught thousands of investors to interpret market-moving news and investor psychology through a disciplined combination of technical and fundamental analysis.

His major market calls included calling the 2008 financial crisis months before it began, identifying risks in subprime and Alt-A mortgages, and warning of trouble at Lehman Brothers, Bear Stearns, and New Century Financial. He also forecast the Dow Jones Industrial Average’s decline toward 6,500 and its subsequent recovery, and projected gold’s rise above $1,500 an ounce when it traded below $600.

Today, Cooper draws on decades of experience to help investors make informed decisions and pursue long-term wealth creation. His approach emphasizes rigorous research, disciplined risk management, and an understanding of how fundamentals, price trends, and market sentiment influence investment opportunities.

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