Gold Eyes Record High On Safe-Haven Status, Weak Dollar, Hopes Of Softening Fed: Peter Schiff Sees 'Spectacular' Rally

Gold continued its upward momentum over the $2,000 per ounce level during Tuesday morning Asian trade supported by a decline in the dollar and rising expectations that the Federal Reserve's aggressive monetary policy may be nearing its end.

Spot gold was trading at $2,022 per ounce at the time of writing. The commodity has risen from the lows of $1,622 levels seen in October 2022 and has been trading close to the $2,000 per ounce level in recent days. The SPDR Gold Trust GLD and the iShares Gold Trust IAU have gained over 9% in the last month.

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It is noteworthy that gold-linked stocks like AngloGold Ashanti Limited AU, SSR Mining Inc SSRM and Hecla Mining Company HL have made gains ranging from over 15% to 46% in the last month.

On the economy front, U.S. job openings in February declined to the lowest level in about two years while factory orders dropped for a second straight month indicating the economy may be weakening. This is likely to have raised investor expectations about Fed's rate hikes nearing their end in the foreseeable future.

A weakening dollar is also helping push the yellow metal higher, which could test its record high of $2,075.47 seen in August 2020.

Expert Take: David Lennox, an analyst at Sydney-based Fat Prophets told Bloomberg that gold price is primarily now being driven by concerns about the dollar. Bullion is enjoying a "safe haven premium" in the wake of financial fears including the recent banking crisis and geopolitical tensions, he added.

Experts like Peter Schiff, chief economist and global strategist at Euro Pacific Capital, have been sounding out the likelihood of gold prices witnessing a surge.

"Today the #gold price closed at a new 52-week high. Yet senior miners still need to rise by over 20% and juniors by over 25% to hit new 52-week highs. The divergence is due to negative sentiment. Investors still don’t believe the rally is real. It’s real and will be spectacular," he tweeted.

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