- Gold prices may surge to $6,000 per ounce by year-end and $10,000 by decade-end
- Tensions in the Persian Gulf are causing global supply chain disruptions and commodity upcycles
- Gold is seen as a leading indicator of a broad inflationary trend across commodities
Even after an unprecedented rally since the start of last year, elevated gold prices are here to stay and may even see a massive, sustained surge, potentially soaring up to $6,000 per ounce by the end of the year and $10,000 per ounce by the end of the decade, according to renowned economist Edward Yardeni, president of Yardeni Research.
Speaking to NDTV Profit, Yardeni offered his thoughts on the ongoing tension in the Persian Gulf, which, according to him, will lead to major global supply chain disruptions and, more importantly, kickstart a significant commodity upcycle. As such, he views gold not just as a safe haven, but as the primary bellwether for a broader inflationary trend across commodities.
"I think gold was sort of a leading indicator for other commodities, and right now gold is consolidating, just kind of taking a rest around $5,000, but I think it's gonna go to $6,000 by the end of the year, and I think it's gonna go to $10,000 by the end of the decade," Yardeni said.
"I think it is signalling a general rise in commodity prices," Yardeni added. "Here with the Persian Gulf war, we have a spike in oil prices, but we've also seen aluminium prices and fertiliser prices going up significantly because both commodities are affected by supply restrictions as a result of the war."
Yardeni warned of a looming ripple effect that could severely impact global food systems and consumer prices.
"Within a few months, if oil prices stay up and it's hard to get the chemicals we need to make fertiliser, then farmers are going to be in the planting season with very expensive fertilisers, so yields are gonna go down, and that could push prices up in the summer and in the winter," he explained.
To combat this, Yardeni suggested the White House might be forced into policy shifts ahead of the upcoming elections.
"Now the president may respond by lowering some of his tariffs because some of his tariffs have contributed to rising steel, copper, and aluminium prices, and maybe for the sake of the midterms and affordability, he'll back off on some of those tariffs," he concluded.
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