🎁If Gold Breaks $3,000, Could a Short Squeeze Follow? Have You Bought Gold?
On February 11, $Gold - main 2504(GCmain)$ hit a new high of $2,968, just a step away from the widely agreed $3,000 target set by major banks. It’s highly likely to break $3,000 this week. Of course, new highs in gold are nothing new—gold prices have already set 40 record highs in 2024.
Is $3,000 the consensus target among major banks?
Citigroup: Raised its 0-3 month gold target to $3,000 per ounce while maintaining the 6-12 month target at $3,000.
Goldman Sachs: Set a $3,000 target, citing ongoing US policy uncertainty and safe-haven demand from central banks and investors as key drivers.
UBS: Increased its 12-month forecast to $3,000, emphasizing gold's role as a store of value and hedge against uncertainty, despite prices being above its fair value estimate.
Safe-haven and arbitrage demand drive gold prices higher amid trump tariff concerns
Last Sunday, President Trump announced a 25% tariff on steel and aluminum imports, Market speculates that precious metals could be next. This has fueled a surge in arbitrage activities.
With rising U.S. demand, arbitrage traders are borrowing gold from central banks in London. The London Bullion Market Association reported a 1.7% drop in gold reserves in January due to increased shipments to the US, while COMEX gold inventories have surged over 90% since late November.
London Vault data
If tariffs are imposed, will the short squeeze or price drop be more severe?
If the US implements a 3.5%-5.2% gold import tariff, the price gap between US and global markets will widen, driving a short squeeze and pushing gold prices higher.
However, once excess gold floods the US market, oversupply could lead to a sharp correction.
The key question is whether the initial price surge from short covering will outweigh the subsequent decline from inventory buildup.
Gold’s short-term peak resembles Bitcoin’s bull cycle—while the upside target remains uncertain, this cycle seems to be nearing its end. Perhaps staying on the sidelines is the best choice for now?
Questions to discuss:
What’s your take on gold? Do you think it will break $3,000?
If Trump imposes tariffs, could we see a short squeeze in gold?
Do you hold gold in your portfolio? With Valentine’s Day coming up, would you gift gold to your girlfriend or wife? 💛🎁
Leave your comments and also post to win tiger coins~ Or you can post directly in this topic to get coins: Gold All Time High Again! Will it Reach $3000 in Feb.?
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If Trump imposes tariffs on gold, we could definitely see a short squeeze. The widening price gap between the U.S. and global markets would drive up arbitrage demand, pushing prices even higher. However, the risk of a sharp correction remains if too much gold floods the U.S. market. The real question is whether the initial surge will outweigh the eventual drop.
As for holding gold in my portfolio, I see it as a great hedge against uncertainty, but I also recognize the risks of buying at record highs. And for Valentine’s Day—gold is always a classic gift! Whether it’s jewelry or investment-grade gold, it’s a meaningful and valuable present.
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On February 11, $Gold - main 2504(GCmain)$ hit a new high of $2,968, just a step away from the widely agreed $3,000 target set by major banks. It’s highly likely to break $3,000 this week. Of course, new highs in gold are nothing new—gold prices have already set 40 record highs in 2024.
Safe-haven and arbitrage demand drive gold prices higher amid trump tariff concerns
@Universe宇宙 @koolgal @LMSunshine @Shyon @Aqa @GoodLife99 @rL @HelenJanet @SPACE ROCKET @TigerGPT
Do you hold gold in your portfolio? With Valentine’s Day coming up, would you gift gold to your girlfriend or wife? 💛🎁
Leave your comments and also post to win tiger coins~ Or you can post directly in this topic to get coins: Gold All Time High Again! Will it Reach $3000 in Feb.?