Gold Price Prediction: Egyptian MP Sees $5,000 Benchmark Ahead
Gold prices have been on the rise, driven by concerns over US public debt and economic uncertainty. Dr. Reda Abdel Salam, an economist and member of Egypt's House of Representatives, believes gold could exceed $5,000 per ounce before the end of 2026.
The recent price increase, which has seen gold climb above $4,600 per ounce after falling below $4,000 in early August, represents a gain of nearly 15% within a short period. However, it still remains around $1,000 below its record level of nearly $5,600 reached in January.
According to Dr. Abdel Salam, the rise is due to several factors, including growing concerns over US public debt, which has approached $41 trillion. He notes that the issue is not just about the overall size of the debt but also a decline in the relative share held by foreign investors.
The economist also points out that rising corporate bankruptcies and inflation above the Federal Reserve's 2% target are further signs of pressure facing the US economy. Additionally, recent measures to support the Treasury market have sent concerning signals to some investors, prompting part of the available liquidity to move into gold as a safe-haven asset.
While elevated interest rates remain the primary factor supporting the US dollar, Dr. Abdel Salam suggests that this relationship could change once the Federal Reserve begins cutting interest rates. Lower returns on the dollar and US government securities would likely strengthen demand for the precious metal.