The gold price is currently showing remarkable resilience. It is consistently trading near its seven-month high. This trend stems from investor expectations ahead of important economic data releases. It also signals bullish sentiment for the yellow metal. ANZ Bank analysts also expect it to trade above the critical level.
ANZ: Gold price will hover above $2,000 next year
cryptokoin.com As you follow from , gold exceeded $2,000 after the Fed hinted that it might cut interest rates in 2024. Strong central bank purchases will also include demand for strategic investment, according to economists at ANZ Bank. In this context, analysts share the following predictions for the gold price:
Gold is benefiting from both the geopolitical crisis and the recent sell-off in the US dollar. Investment demand, which has been largely sluggish this year, is getting stronger. Weaker-than-expected economic data strengthens expectations that the Fed will cut interest rates early. While the decline in inflation increases the risk of real interest rates rising in the first half of 2024, interest rate cuts later in the year will be supportive for gold investment demand. We expect gold to trade above $2,000 next year as strong central bank purchases are joined by strategic investment demand.
Federal Reserve policy and the role of the dollar on gold
Possible interest rate cuts by the US Federal Reserve significantly affect the market dynamics of gold. The US dollar remained close to its lowest level in three months, recording the steepest monthly decline in the last year. Therefore, gold is emerging as an increasingly attractive investment option. Low interest rates increase the attractiveness of gold by reducing the cost of holding non-yielding bullion. As a result, the gold price manages to stay above the $ 2,000 limit.
Spot gold recently reached its highest level since early May. Now it’s on track to make another monthly profit. This upward move reflects the market’s reaction to US economic indicators. Meanwhile, U.S. economic growth beat expectations in the third quarter. However, market sentiment remains focused on potential rate cuts. Attention now turns to the statements from Federal Reserve officials, especially Chairman Jerome Powell. The continuation of the Fed’s dovish approach may expand gold’s upward trajectory.
Gold price technical analysis: The outlook is bullish
Market analyst James Hyerczyk evaluates the technical picture of gold as follows. Currently priced at 2,044.62, gold is trading above its 200-day and 50-day moving averages of $1,944.71 and $1,943.71, respectively. This indicates a strong upward trend in the short and medium term. This position above the moving averages, combined with its proximity to the minor resistance level at $2,067.00, suggests continued upward momentum. The current price is also significantly higher than the minor support at $2,009.00 and the major support at $1,987.00. This strengthens the upward trend.
Gold price daily chartThe market’s positioning above major moving averages and near minor resistance reflects a strong bullish market sentiment for the gold price, with the potential for further gains if it breaches the minor resistance level, with no signs of reversal. Additionally, the 50-day moving average crossing to the strong side of the 200-day moving average could be a source of volatility.
