Where are gold prices headed? A trader with 38 years of experience answers
said central banks bought over 290 tonnes of gold in the first quarter of calendar 2024–that’s the highest on record. The history of the financial markets shows that any spectacular fall in asset prices triggers a cascading effect on all asset prices. This is logical.
When traders are hit with losses on leveraged trades, they usually don’t know what hit them. They tend to sell – everything. After all, they need the money to meet margin calls.
Any dip in gold at these times can give you percentage returns that go beyond the dreams of riches or even avarice. For over 3,500 years, people have depended on gold as a store of value and shelter from economic distress. That hasn’t changed yet.
In the near term, you have the US elections, ahead of which the Fed will try to subdue prices. So it’s a crapshoot (playing an uncertain hand at the craps table). But the long-term horizon is crystal clear.
Would I bet long on gold in 2025 and beyond? Yes – 100% on every single day of the week and twice as much on weekends. Vijay L. Bhambwani is the author of the first official commodities trading guide in India. He designs statistical and behavioural trading models for his family owned prop trading outfit. He stays at South Mumbai and has been trading in the markets since 1986. He tweets at @vijaybhambwani and has a video blog at www.youtube.com/vijaybhambwani
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