Gold Price Tipped to Soar on Hawkish Rate Expectations Backlash

The gold price has been trading within a narrow range of $4,000 to $4,100 over the past few days. Otavio Costa, a macro strategist and partner at Crescat Capital, notes that the market is pricing in more rate hikes than are likely to materialize.

This aligns with his broader view that gold is forming a significant bottom and that the selloff could be one of the biggest buying opportunities of the cycle. He sees the structural case for hard assets as no longer a fringe view, with a medium-term price target of $4,500 to $5,500 per ounce.

Peter Schiff, the long-time gold believer, also weighed in on the current setup, stating that the U.S. dollar is falling sharply and gold is up again. He argues that gold is the last safe haven standing and that the current correction is masking a buying opportunity.