The gold trade has moved from West to East, said Florian Grummes, managing director of Midas Touch Consulting.

On Wednesday, Grummes spoke to Kitco Mining at the 2024 Precious Metals Summit Beaver Creek in Colorado.

Despite a recent consolidation phase, Grummes believes that gold's uptrend remains intact, with a potential target of $3,100 per ounce.

Grummes highlighted several factors supporting his bullish outlook: Gold has formed a strong cup-and-handle pattern, suggesting further upside. Growing physical demand from Asia, particularly China and Russia, is a significant driver. Gold is appealing as a safe-haven asset in uncertain economic times.

“I think gold has been completely ignored in the West. I mean, it's no secret that for years, gold basically has been moving from the West towards the East,” noted Grummes.

Despite high metal prices, Grummes noted that mining stocks have been disappointing with limited upside. He said the AI frenzy was much more exciting to Western investors.

“It's all about the latest apps, the latest software. I think gold mining stocks are just very much an old-fashioned investment to many people,” said Grummes.

“This rally over the last 11 months has been driven by geopolitical events and driven by physical demand from China primarily,” noted Grummes. “And the Western investors have been focusing on AI and a few stocks in the tech sector, right? There was no interest in safe-haven assets like gold and silver.“

Grummes said there is the potential for a rapid and significant price increase in gold, similar to what occurred during the COVID-19 pandemic.

When Grummes met with Harris a year ago, he forecast $2,500 ounce gold in 12 months.

“I think I missed it by four dollars,” noted Grummes.

Coverage of the 2024 Precious Metals Summit Beaver Creek in Colorado is sponsored by Newcore Gold.

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Analyst who correctly guessed gold at $2,500 looks ahead - Midas Touch’s Florian Grummes

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