🎁If Gold Breaks $3,000, Could a Short Squeeze Follow? Have You Bought Gold?
On February 11, $Gold - main 2504(GCmain)$ hit a new high of $2,968, just a step away from the widely agreed $3,000 target set by major banks. It’s highly likely to break $3,000 this week. Of course, new highs in gold are nothing new—gold prices have already set 40 record highs in 2024.
Is $3,000 the consensus target among major banks?
Citigroup: Raised its 0-3 month gold target to $3,000 per ounce while maintaining the 6-12 month target at $3,000.
Goldman Sachs: Set a $3,000 target, citing ongoing US policy uncertainty and safe-haven demand from central banks and investors as key drivers.
UBS: Increased its 12-month forecast to $3,000, emphasizing gold's role as a store of value and hedge against uncertainty, despite prices being above its fair value estimate.
Safe-haven and arbitrage demand drive gold prices higher amid trump tariff concerns
Last Sunday, President Trump announced a 25% tariff on steel and aluminum imports, Market speculates that precious metals could be next. This has fueled a surge in arbitrage activities.
With rising U.S. demand, arbitrage traders are borrowing gold from central banks in London. The London Bullion Market Association reported a 1.7% drop in gold reserves in January due to increased shipments to the US, while COMEX gold inventories have surged over 90% since late November.
London Vault data
If tariffs are imposed, will the short squeeze or price drop be more severe?
If the US implements a 3.5%-5.2% gold import tariff, the price gap between US and global markets will widen, driving a short squeeze and pushing gold prices higher.
However, once excess gold floods the US market, oversupply could lead to a sharp correction.
The key question is whether the initial price surge from short covering will outweigh the subsequent decline from inventory buildup.
Gold’s short-term peak resembles Bitcoin’s bull cycle—while the upside target remains uncertain, this cycle seems to be nearing its end. Perhaps staying on the sidelines is the best choice for now?
Questions to discuss:
What’s your take on gold? Do you think it will break $3,000?
If Trump imposes tariffs, could we see a short squeeze in gold?
Do you hold gold in your portfolio? With Valentine’s Day coming up, would you gift gold to your girlfriend or wife? 💛🎁
Leave your comments and also post to win tiger coins~ Or you can post directly in this topic to get coins: Gold All Time High Again! Will it Reach $3000 in Feb.?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
If Trump imposes tariffs on gold, we could definitely see a short squeeze. The widening price gap between the U.S. and global markets would drive up arbitrage demand, pushing prices even higher. However, the risk of a sharp correction remains if too much gold floods the U.S. market. The real question is whether the initial surge will outweigh the eventual drop.
As for holding gold in my portfolio, I see it as a great hedge against uncertainty, but I also recognize the risks of buying at record highs. And for Valentine’s Day—gold is always a classic gift! Whether it’s jewelry or investment-grade gold, it’s a meaningful and valuable present.
$SPDR Gold Shares(GLD)$ $SPDR Gold MiniShares Trust(GLDM)$ $Barrick Gold Corp(GOLD)$
@Tiger_chat @TigerStars @Tiger_comments @TigerGPT
2月11日，$Gold-Main 2504(GCmain)$创下2,968美元的新高，距离广泛认同的$3,000主要银行设定的目标。本周极有可能突破3000美元。当然，黄金再创新高并不是什么新鲜事——2024年金价已经创下40个历史新高.
特朗普关税担忧下避险和套利需求推高金价
@Universe宇宙 @koolgal @LMSunshine @Shyon @Aqa @GoodLife99 @rL @HelenJanet @SPACE ROCKET @TigerGPT
您的投资组合中是否持有黄金？与情人节接下来，你会送黄金给你的女朋友或妻子吗？💛🎁
留下你的评论，也可以发帖赢虎币~或者你可以直接在这个话题发帖获得币：黄金再次空前高涨！2月份会达到3000美元吗？