David Erfle, editor and founder of Junior Miner Junky, shared his thoughts on gold, explaining what factors have pushed it to new levels, why it’s now consolidating and how high it could go in 2024.

In his view, the yellow metal started to break out for macroeconomic reasons, and picked up momentum when tensions in the Middle East heated up. With the situation now looking calmer, gold has pulled back.

Erfle said gold could correct all the way back down to US$2,200, but emphasized that he remains bullish.

‘It could correct down to US$2,200 and still be in an uptrend,’ he explained. ‘Gold’s got a lot going for it right now, and … there’s a lot of uncertainty in the stock market, there’s a lot of uncertainty in Fed policy. So I’m really not concerned about the gold price. I’m more concerned about when the gold stocks are going to finally start to react like they historically react, and show two to three times leverage on the gold price, which they’ve failed to do thus far.’

When asked about gold’s upside potential, Erfle said that after a period of consolidation he sees US$3,000 as the next target. While that’s not guaranteed to happen in 2024, he said he wouldn’t be surprised if gold got there.

He also discussed silver, including what it will take for the white metal to get past US$30 per ounce.

Erfle noted that he doesn’t think the US Federal Reserve will lower interest rates until it’s forced to, and that’s when he thinks silver will move. ‘Being ‘forced to’ means the stock market really starting to crack and go lower — the S&P 500 (INDEXSP:.INX) getting below 4,900 and really starting to move lower during an election year,’ he said.

‘Once you get the silver price breaking out above US$30, I think that will really get the bull market going in gold, and especially gold stocks. And we also need to see the gold-silver ratio trending below 80,’ Erfle concluded.

Watch the interview for more of his thoughts on gold and silver.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.