Gold Prices May Soar to $5,000 as Fidelity Sees Strong Demand

Fidelity's Jurrien Timmer believes gold prices could climb towards $5,067 an ounce, implying about 16% upside from current levels.

This prediction is based on his global-liquidity model and takes into account the recent rebound of gold prices after falling to around $4,000.

Timmer's case for a higher gold price rests heavily on liquidity and investment demand. Gold ETFs have attracted $18 billion in August, the second-largest monthly inflow on record according to the World Gold Council.

This is significant because global gold ETF holdings climbed to a record 4,189 tonnes, while assets under management reached $615 billion.