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Cryptocurrency analyst Michaël van de Poppe predicted Wednesday that gold could face a “significant” correction, even as the precious metal continues its bullish rally.
Not The Best Time To Buy Gold?
Van de Poppe took to X to share his thoughts on the ongoing surge in gold prices, finding the 47% year-to-date increase “very unusual.”
“It’s up 47% for the year, while the average is between 6-8% on a yearly basis,” the analyst highlighted. “Very unusual occasion and I think that we’re going to see a significant correction.”
However, he did not specify a timeline for when the retracement could occur.
Van De Poppe added that gold’s chart looked bullish, but it’s not the “best time” to buy into the asset.
See Also: Amid Gold Rally, Economist Argues Mining Stocks ‘Finally Leading Metals Higher,’ Pasofino To Update Dugbe Mine Feasibility Study To Reflect Updated Price Assumptions
Schiff Feels Otherwise
Van De Poppe’s prediction contrasted sharply with that of economist Peter Schiff, who was convinced that gold’s historic rally would not cool down.
“I think gold is not going to stop going up because the dollar is not going to stop going down. It’s not going to stop at $5,000 [per ounce]. It’s not going to stop at $10,000. It’s going to go higher. I mean, it could go to $20,000,” Schiff said in an interview.
The gold bug predicted that the Federal Reserve would pivot to quantitative easing, a policy in which the central bank purchases bonds to pump cash into the economy, sending inflation “through the roof.”
A Historic Run For Yellow Metal
Gold has been on a historic rally, with the market value of the United States’ gold reserves topping $1 trillion for the first time. The spot price hit a new all-time high of $3,897.50 per ounce on Wednesday.
Despite this, the country’s strategic share of global gold reserves has fallen to a 90-year low, while countries like China, Russia and India have been on an aggressive buying spree
The gold price surge has also been observed to have a potential impact on Bitcoin’s next move, according to a cryptocurrency analyst, who noted that Bitcoin’s biggest rallies have often followed gold’s macro tops — seen in 2013, 2017 and 2020/21.
Price Action: At the time of writing, spot gold was trading at $3,868.71 per ounce, up 0.09% in the last 24 hours, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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