Next Peak of Gold Prices is Expected in 2026 or 2027
Gold prices $Gold - main 2402(GCmain)$ have breached the $2,000 per ounce once again this week.
Should investors buy gold at US$2,000?
Investors are often told to buy low and sell high, but the current situation is tricky — gold is close to its highest price ever, but many market watchers believe its run has only gotten started.
"$2,000" shown in gold font
Omar Ayales, Chief Market Strategist and Editor at Gold Charts R Us, believes that gold prices will continue to rise.
He is tracking a 7-to-8-year cycle in the gold market and suggests that the next peak will occur in 2026 or 2027.
He explains that this cycle not only indicates that gold prices hit a bottom every 7 years, but also that gold prices enter an 11-year upswing and reach a high point after reaching the bottom. Therefore, every bottom in gold is the starting point of an 11-year rally.
In his view, it's not a question of gold breaking its all-time high, but when.
Ayales asks, "Will gold prices break historical highs in this upswing? Probably not. It might touch $2,075, then pull back to around $1,900, and move up again. The possibility of such a trend is very high." In general, he said, he is very bullish on gold and believes it will break new highs. This could happen in the next one to two months, or in the next six to nine months. It will happen eventually, regardless of when.
Ayales anticipates that gold prices will find short-term support at $1,925, with more medium-term support around $1,800. In the unlikely event of a sharp drop, $1,675−$1,700 will be the "super support level" for gold.
Looking ahead to the macro economy, he expects the higher interest rate environment to last 30 to 40 years.
Ayales explains that he is focusing on the yield of the US 30-year Treasury bond $30-YR T-BOND - main 2403(ZBmain)$ . For him, the US Treasury bond yield is a very effective indicator for tracking long-term inflation expectations. A long-term trend change in the US Treasury market can last for 30 to 40 years, and the last super cycle of Treasury bonds occurred in the past 40 years.
The decline in US Treasury yields, especially after a recent unimpressive bond auction, plays a crucial role in gold's rising trend, making it an increasingly attractive investment.
Given this assessment, he advises investors to add gold and gold stocks to their investment portfolios.
In his view, a question that investors must consider in the future is that if US Treasury bonds enter a 30-to-40-year bear market, assets should not be heavily allocated to Treasury bonds. A safe investment allocation of 40% in a portfolio is no longer US Treasury bonds, but other assets like gold and gold mining stocks.
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