Analyst Dylan Smith from Rosenberg Research said that investors who are concerned about the possibility of an excessive rise in gold prices need not worry, as a series of new driving factors are pushing precious metals into another clear upward trend, and this rise will soon break through $3000.

He believes that the price of gold is actually experiencing two independent increases, each driven by different factors, which means that the next stage of the bull market has just begun.

Rosenberg Research has been setting its target price at $3000 or higher for some time, and they believe that the risk of a pullback is not significant. In fact, they expect to have more momentum in the future.

Smith said: "We see a huge demand for gold from the central bank, which still exists and is still supporting the high gold price. We see a lot of cautious demand in emerging markets, where there is a risk of de dollarization, such as Türkiye, where the inflation rate is very high. We see a substantial increase in revenue in major jewelry markets, such as India. All of this provides a real fundamental good for gold prices."

He pointed out, "But we pointed out a few months ago that the traditional driving factors of gold - the US dollar and US interest rates - have not really played a role. When the loose cycle begins to be more widely accepted by the market and the pace of the loose cycle becomes clear, we will see gold prices rise again, which is exactly what was presented before and during the Fed's interest rate cuts

Smith also pointed out, "In the past three months, traditional gold ETFs have shifted from net outflows to net inflows. Although they have only risen by about 3%, the key is that they have reversed the situation. This means that as mid-range investors begin to realize that gold will become an important component of investment portfolios, and as we face more uncertain economic periods, this will drive the next round of gold's trend

Smith added that industrial demand for gold has also been weak recently, but they are also starting to see a recovery. This is another fundamental driving factor behind gold.

When asked when he expected gold to reach the high price target of $3000, Smith refused to disclose the specific time, but said it would be achieved soon.

He stated that the traditional inverse relationship that drives the price trend of precious metals, namely the inverse relationship between the US dollar and gold, will also become the main factor for gold prices to break through $3000.

Daily chart of spot gold