Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Gold hasn’t rested since crossing the $3,000 barrier, leading Bloomberg’s Senior Commodity Strategist Mike McGlone to say the rally is far from over. More specifically, he claims the yellow metal’s surge has more than 30% to run in 2025. In tandem with various experts and financial institutions, McGlone sets his sights on $4,000 as the next logical target. A gold-positive combination of devaluing risk assets, falling Treasury yields, and macroeconomic stressors is crucial to this next leg up.
Declining Risky Assets
In a recent X post, the strategist highlights a “reversion in silly-expensive risk assets” as a serious boost to gold’s momentum. Cryptocurrencies, for instance, have suffered major blows in what proponents were hoping would be a breakout year. Bitcoin is down nearly 10% year-to-date, and Ethereum has slumped 40%1 in the past three months.
Although McGlone specifically called out digital currencies, the stock market is getting hit hard, too. Amid Trump’s tariff bombardment, stock indices have tumbled from recent all-time highs, shedding trillions in a matter of months. As these volatile instruments wane in value, gold naturally benefits as investors seek shelter in safe-haven assets.
US Yields Meet Gravity
Treasuries could be a casualty of slipping risk assets, as well. “If the US stock market continues falling,” McGlone explains, “US Treasuries at about 4% will face gravity pull from government bonds in China and Japan yielding less than 2%.” In other words, the lower yields set in foreign countries will necessitate a decrease in US yields.
This entire process acts as a tailwind for gold as investors tend to prefer tangible assets with inherent value as the return from risk-on assets falls. The Federal Reserve’s desire to continue monetary easing could be a further weight pulling down interest rates and elevating gold.
The Fog of Uncertainty
The common thread in McGlone’s forecast for strong gold performance is rampant uncertainty. Question marks dot the economic horizon as Trump wades into a seemingly aimless trade war, zapping consumer spending, tanking GDP forecasts, and alienating partners.
At the same time, geopolitical tensions flare as hot wars in the Middle East and Eastern Europe continue despite peace attempts. Gold is the beneficiary as central banks continue loading up their reserves and retail investors start following suit.
Why $4,000 is Just “A Matter of Time”
Not long ago, $3,000 was viewed as the key milestone for gold’s rally. With the yellow metal trading firmly above this once distant point, many experts say $4,000 is next. This roughly 30% surge from current levels is a serious leap, but nothing gold hasn’t accomplished dozens of times over the years.
Keep in mind that these round figures serve only as psychological barriers, having no real bearing on price action. The surge past $3,000 is a clear indication of gold’s bullish momentum. As McGlone suggests, “$4,000 an ounce for gold [is] a matter of time,” signaling the yellow metal isn’t dependent upon major shocks but rising on sheer momentum and fundamentals.