Gold could hit $5,000 as stock market rebounds

In the United States, gold prices have moderated following a major rally and alongside a rebound in the stock market. As of May 16, 2025, indicators from experts suggest that the price of gold may potentially soar to $5,000, with notable figures in finance expressing their bullish outlook. David Schassler, the head of multi-asset solutions at Van Eck, asserts that the current economic backdrop, characterized by substantial government debt and spending along with political chaos, is conducive for gold price increases. Schassler’s insights were shared during a recent segment on CNBC's "ETF Edge." Furthermore, hedge fund manager David Einhorn, known for his influential position at Greenlight Capital, reiterated similar sentiments during his appearance on another CNBC show, "Closing Bell." He expressed confidence in gold's trajectory, emphasizing the bipartisan inaction on government deficit issues, indicating that strategic moves in financial markets are likely to be driven by crisis management rather than proactive measures. He holds a long position in gold, reinforcing the anticipation that prices could reach the $5,000 mark in 2026. While gold is hitting its stride as a safe-haven asset, bitcoin continues to demonstrate volatility but has maintained an upward momentum. Bitcoin experienced a significant increase of approximately 60% over the past year and a 10% uptick in the past month, seemingly trading in sync with trends in the stock market. Experts suggest that despite the risks associated with bitcoin investments, new financial products such as ETFs that incorporate options could provide investors with ways to limit exposure to volatility while still capturing the asset's growth potential. Todd Rosenbluth from VettaFi highlights developments in the ETF sector, showcasing products like the Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ), which aims to protect investors against losses of over 20%. Overall, the contrasting dynamics in the gold and bitcoin markets reflect a broader narrative in the financial landscape, where traditional and crypto assets diverge and intersect. As the uncertainty of economic conditions persists alongside stock market fluctuations, both gold and bitcoin are positioned differently but may ultimately be influenced by the same overarching factors, especially as crisis management strategies are deployed by market participants.