Gold Surge Possible to $5,000 if Fed Holds Rates Steady

Analyst Jesse Colombo believes that gold prices could surge significantly if the Federal Reserve holds interest rates steady, potentially reaching $5,000 per ounce. According to Colombo, investors were overly bearish before the recent CPI report, causing a sell-off that was somewhat excessive.

In this scenario, gold could rally as uncertainty is removed, and investors seek safe-haven assets. However, if the Fed raises rates by 25 basis points as expected, gold prices may see only a mild relief rally.

Colombo advises caution ahead of the Fed decision but remains optimistic about gold's prospects, especially if the price closes solidly above the key $4,400 resistance level, signaling institutional support and a potential strong upward trend in the coming months.