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 spot price could very soon notch a record-high of $3,500 after futures market crossed the threshold this week. Swiss-based precious metals manufacturer, MKS Pamp, see the $3,500 gold price. In a recent bullish outlook MKS Pamp outlined eight key conditions that would need to materialize for gold to continue it’s surge this year.
1. Persistent Central Bank Demand
Central bank gold demand is widely viewed as a central pillar to gold’s rise. For the past three consecutive years, national buyers have gobbled up more than 1,000 tons annually. This strong appetite is expected to continue through 2025, with UBS projecting 900 tons and Goldman Sachs forecasting 960 tons of purchases.
2. Fragmented Global Economic Order
A confluence of dollar weakness and weaponization has ushered in a reserve currency war as countries and economic blocs compete to push their currencies to the top position. As the sun sets on USD hegemony, a multipolar economic world emerges. According to MKS Pamp, this will “escalate geopolitics” and reinforce already robust central bank gold demand.
3. Federal Reserve Rate Cuts
The Federal Reserve’s fiscal direction remains at a standstill as the Trump administration’s policy wavering sparks confusion. A one-two combination of rising inflation and escalating US debt could force the country’s financial czars to intentionally weaken the dollar. This would undoubtedly push investors toward gold to keep pace with inflation.
4. Lower Demand for US Assets
The US economy’s strength plays a crucial role in gold’s climb. If the “relative demand for US assets is toppy,” the yellow metal may experience a significant boost from rotating capital. As the de-dollarization movement is reinvigorated by an all-out trade war, the dollar index is hitting multi-year lows, making gold more attractive.
5. Renewed Retail Interest
So far, gold purchases have been dominated by central banks, but retail investors could fuel the next leg up. Analysts suggest that systemic economic uncertainty might encourage everyday Americans to start investing in gold for portfolio diversification.
6. Weaker US Dollar
The US only has itself to blame for the waning dollar. Decades of unchecked spending and printing under the Modern Monetary Theory (MMT) experiment have burdened the currency with unsustainable national debt. On top of that, overplayed dollar weaponization through sanctions and other financial punishments has prompted countries to reduce their dependence on the dollar.
👉 Suggested Read: Modern Monetary Theory – Socialist Economics for Dummies
7. Low Global Economic Confidence
In the US, consumer spending and confidence are falling as rising costs, dollar devaluation, and geopolitical tensions rise. This dipping optimism reflects a general “loss in confidence in the global monetary system,” says MKS Pamp analysts. The potential result is significant currency debasement as the dollar’s reputation falters.
8. Secular Gold Run
Gold has put on some tremendous performances in the past, but MKS Pamp says, “This time is different.” The economic world order is undergoing rapid and systemic changes, and the US dollar might not escape the turmoil without significant damage. Gold is emerging as a clear winner in this global transition, solidifying its role as a cornerstone of the new fiscal framework.