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Gold’s rally isn’t just about the dollar anymore. According to Cam Hui, cross-asset strategist and founder of Humble Student of the Markets, the precious metal’s next major move could send prices soaring toward $7,000 in the coming years. What’s behind this bold call? Cam recently joined Financial Sense to discuss the technical, monetary, and macro drivers behind precious metals.

Gold’s Breakout: Not Just a Dollar Story

Cam Hui’s background as a quantitative analyst means he’s not in the business of wild predictions. So when he sees a $7,000 price target for gold using a point-and-figure chart—a tool that strips away short-term noise—it’s worth paying attention. “The last time gold broke out of a long base, it went from $500 to nearly $2,000,” Cam explains. “This time, the breakout happened at $2,100, and the chart suggests there’s much more room to run.”

But what really sets this rally apart? Gold isn’t just rising against the US dollar—it’s breaking out in every major currency. “This tells me it’s not just currency weakness. It’s demand for gold itself,” Cam says, noting especially strong moves in the Chinese yuan. That kind of broad-based strength is rare—and, for gold bulls, a major signal.

See charts: A 14-Year Dollar Trend Could Break—What This Means for Investors

Why the Bulls Are Still in Control

A lot of investors worry the precious metals market is getting “frothy.” But Cam’s analysis of the silver-to-gold ratio shows that the market hasn’t reached speculative extremes—yet. “Silver has moved, yes, but it’s not at a level that would make me worry about a top. We’re not in bubble territory,” he notes.

His technical models—especially the point-and-figure chart—don’t give a specific timeline, but Cam estimates the $7,000 target for gold could play out over three to five years. “It’s a secular bull market. There will be corrections and consolidations, but the long-term trend remains up.”

Related interview: Marc Faber: “Trump Is a Gift from God for Gold Investors”

What Could Go Wrong? The Policymaker Wild Card

Every bull case needs a reality check. Cam is quick to point out that the biggest risk to gold would be a sharp reversal in US fiscal policy. “If Washington suddenly balanced the budget and stopped running big deficits, gold would fall. But that’s a low-probability scenario. The tradeoff is that such fiscal tightening would likely trigger a recession and crash the stock market,” he warns.

In other words: the policy path that would cool gold’s rally comes with its own set of dangers for investors.

Why the Macro Backdrop Favors Gold

COVID-era stimulus wasn’t just an economic lifeline—it was the trigger for today’s inflation and, by extension, the new gold bull market. “When the global economy came to a halt, policymakers responded with unprecedented fiscal and monetary stimulus. Deficits soared,” Cam explains. “Was every decision perfect? No. But policymakers did what was necessary to save the patient.”

The result: higher inflation expectations and a secular erosion of confidence in the US dollar. “We’re now seeing global investors, including central banks, reduce their exposure to Treasuries and increase their allocation to gold,” says Cam. “This is no longer a fringe view. It’s the new reality.”

De-Dollarization and the Trade War Effect

Cam also points to a major geopolitical shift: the end of globalization and the rise of trade wars. “Trump’s policies are accelerating a move away from the dollar as the world’s safe haven,” he says. “For decades, US allies benefited from American military and economic power. Now, as the US pulls back, confidence in the dollar erodes, and gold becomes the hedge of choice.”

A weaker dollar is now an explicit policy goal for US leaders aiming to boost domestic manufacturing. That’s a direct tailwind for gold—and Cam isn’t alone in seeing the trend.

What About Silver?

Silver, with its dual role as both a precious and industrial metal, is also showing signs of life. “Silver’s recent surge reflects growing Western investor interest,” Cam points out. “It tends to be more volatile than gold, which means higher risk—but also higher potential reward. If gold doubles, silver’s upside could be even greater, though expect bigger swings along the way.”

Looking Ahead: The Fed, the Dollar, and What’s Next

With Fed Chair Powell set to depart and a “more dovish” successor likely under the next administration, Cam sees more dollar weakness ahead. “If the next Fed chair is seen as less committed to fighting inflation, the dollar will fall—and gold will benefit,” he predicts. This could be a second-half-of-2025 story, but it’s a major risk (or opportunity) investors should have on their radar now.

Bottom Line: Position for Reality, Not Ideals

As Cam puts it: “There’s a difference between what we’d like to see happen and what’s actually happening in policy and markets. Investors need to position for the real world, not the ideal one.”

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