In 2022, just such a scenario played out: the price of gold first reached highs. However, it has since fallen and is currently trading at around $1,787.91 a troy ounce, the report said.
Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, tweeted on Aug. 4 that gold reaching the $2,000 mark is only "a matter of time" as its production is limited while fiat currency production is unlimited.
“Limited gold production versus unlimited fiat supply is a key driver of the yellow precious metal’s long-term rise in value, and continued consolidation between $1,700 and $2,000 an ounce seems to provide the foundation for further gains. We believe it is more likely that the precious metal will break through the upper limit of the range than consolidate below it, ”the message on Twitter reads.
McGlone went on to explain that it takes time for the value of the precious metal to reflect the appreciation of other currencies, such as the euro. “It seems more likely that gold will continue its sustained uptrend and break the resistance around $2,000 an ounce than that it can sustain below the $1,700 support. The euro-denominated precious metal, which reached a new high in March, can serve as a guide. It's usually only a matter of time before dollar-denominated gold follows new highs in other major currencies,” says Mike McGlone.