Gold prices could hit $3,500 in two years, analyst says

Key Points

  • The gold market is “very strong and could hit $3,500 in two years,” according to Barry Dawes of Martin Place Securities.
  • Garth Bregman of BNP Paribas Wealth Management said he doesn’t see “any catalyst” for gold to stop its rise in the short term, though there could be some consolidation around $2,000.
  • Long-term low interest rates and a tight gold market are factors that could continue to drive the rally in the precious metal.

The gold market is “very strong” and could hit $3,500 in two years, one analyst told CNBC this week.

Prices have surged and reached record highs on Monday amid worries over the coronavirus pandemic and tensions between the U.S. and China.

“What is really significant is how quickly it went through that $1,923 which was the previous high. The other thing which was … very, very important was the fact that it went through $1,800 and with similar ease,” said Barry Dawes, executive chairman at Martin Place Securities. “That’s basically saying to me that this is a very, very strong market.”

Spot gold traded about 0.55% lower at about $1,931.24 per ounce on Tuesday afternoon in Asia.

“I’m looking for $3,500 within two years,” Dawes told CNBC’s “Street Signs Asia.” He said some consolidation is “probable,” but the underlying strength of the rally is “very significant.”