Gold price to touch $10,000, S&P set for robust gains. Should you bet on this wealth creation opportunity?

Market strategist Ed Yardeni predicts a bullish long-term trend for S&P 500 and gold prices, which could touch the 10,000 mark by 2029, according to a report by CNBC TV-18.

Yardeni's remarks come at a time when spot gold reached an all-time high of $4,383.73 per ounce on Monday, 22 December. His target predicts over two-fold growth for the gold prices from current levels. The yellow metal has already climbed 67% this year amid strong safe-haven demand, geopolitical and trade tensions, substantial central bank purchases, a soft dollar, and expectations of rate cuts by the US Federal Reserve.

What to expect in the short term?

In an interview with the news portal, the President of Yardeni Research also identified a short-term milestone for the US benchmark equity index, estimating it will hit 7,700 by the end of 2026. Currently, the S&P 500 is up 16.2% year-to-date at 6,834.50, suggesting Yardeni’s 2026 target offers about a 13% potential gain.

Yardeni mentioned that his 2026 forecast would represent the fourth straight year of double-digit growth for the S&P 500.

Explaining his long-term view on gold and S&P 500 — part of his “Roaring 2020s” thesis — Yardini said, “What I've found if you put the two on the exact same chart with the same scale, what you see is that the gold and the S&P 500 tend to be inversely related on a short-term basis, which makes gold a good way to diversify a US stock portfolio.”

The long-term trend, however, is “almost identical,” resulting in his dual 10,000 target for the end of the decade.

Volatility in AI market

Yardeni predicts greater volatility in the AI market in 2026. He notes that the ‘Magnificent 7' stocks, which once acted independently like separate kingdoms, are now in direct competition due to AI. This rising rivalry is expected to drive up spending, benefiting other technology firms that supply infrastructure and services to these major players.

Speaking about the emerging markets, Yardeni called 2025 a year of “consolidation” for the Indian stock market after several years of outperformance.

He indicated that 2026 might be a better year, with the market potentially reaching new highs if trade discussions with the United States are resolved. When comparing India and China, Yardeni clearly expressed a preference.

“There’s opportunities to invest in both China and India, though my preference is to invest in India simply because I like the legal and corporate system better than what I see in China,” he said.

On Bank of Japan rate decision

Yardeni discussed the recent interest rate increase by the Bank of Japan, mentioning that its effects seem limited at present. He called Japan’s current approach a "highly contradictory fiscal and monetary policy,” with the central bank tightening due to inflation worries while the government pushes fiscal spending hard — a situation he compared to driving a car with one foot on the brake and the other on the accelerator.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.