Bloomberg sees gold hitting $4,000 amid falling demand for risk assets

The recent surge in gold prices above $3,200 marks the beginning of a powerful rally toward $4,000 per ounce, according to Mike McGlone from Bloomberg Intelligence. He believes that as the US stock market turns bearish and interest in Bitcoin wanes, investors will increasingly flock to the precious metal.

Gold has already surged 25% over the past year, driven by strong demand from central banks and heavy inflows into gold-backed ETFs. Goldman Sachs has revised its price forecast upward, now expecting the metal to reach $3,700 per ounce by year-end. And if the US enters a recession, the bank’s analysts say prices could climb as high as $3,900.

Global deflationary trends in major economies like China and Germany are boosting gold's appeal as a safe-haven asset. Mike McGlone suggests that if current conditions persist, demand for the precious metal is likely to keep rising.