The gold price is holding above $2,000, hovering near its highest level in the last six months. Shiny metal continues to attract new attention. While the market has significant momentum on its side, analysts have differing views on whether all-time highs are on the near horizon.
It’s only a matter of time before the gold price reaches ATH!
The gold market is benefiting from renewed market expectations that the Federal Reserve will cut interest rates sooner rather than later. According to the CME FedWatch Tool, markets give a 25% chance of a rate hike as early as March. However, markets see a rate cut in May or June as more likely. cryptokoin.comAs you follow from , the spot gold price is around 2,015 dollars.
Some analysts say that regardless of expectations, weakening growth and cooling inflation will continue to support gold prices by supporting eventual interest rate cuts. Craig Erlam, senior European market analyst at OANDA, is a supporter of this view. The analyst says it is only a matter of time before prices reach all-time highs. In this context, the analyst makes the following statement:
We still anticipate some pullback. But this breakout has been supported in recent weeks by softer US data and less hawkish comments from the Fed. That could be the difference this time. It could also have it looking towards record highs just a few percent above where it is now.
If this happens, a rally is possible for the gold price
Looking at gold’s technical price movements, some analysts say a clear break above $2,010 is a critical hurdle the market must clear for any chance of breaking new all-time highs. Nick Cawley, senior strategist at DailyFX.com, says a close above $2,009 is important. The analyst predicts that this will open the door for a rally to $2,049.
Gold may make an upward move but…
Some analysts also say gold continues to benefit from strong seasonal factors. Because they state that prices saw significant rallies in the last month of the year. However, not all analysts are convinced that the gold price is ready to rise. Alex Kuptsikevich, senior market analyst at FxPro, says the gold market is trading in a “thin air zone.”
Kuptsikevich notes that a break above the all-time high of $2,080 could push prices to a key Fibonacci level of $2,130. However, he adds that the market faces some challenges towards this goal. In this regard, the analyst shares the following assessment:
Gold will need strong tailwinds to realize such a bullish scenario. And there may be problems in this regard. The long-term picture also points to the formation of a triple top in gold. This is a reversal formation. However, due to the rapid upward turn experienced since the beginning of October, it is doubtful that this formation is valid. In any case, the dynamics of gold in the coming days seem to be trend-setting for the coming months.
Gold price is in a long sideways movement!
At the same time, some analysts say the gold market requires more Western investors to enter the market through gold-backed exchange-traded products. According to the World Gold Council, 1.5 tons of gold entered the ETF markets last week. This entry also occurred for the second week in a row. Geoff Garbacz, principal at Quantitative Partners, says he doesn’t see gold in a bull market yet, despite higher prices. The analyst points to the following levels for the gold price:
The proxy for gold is GLD and it peaked at $191.36 in May. From there it fell 11.35% to its lowest level on October 5. Yes, it rallied 9.89%, but there is a bigger problem here. GLD peaked at $194.45 in August 2020 and has failed to surpass that level three years later. Therefore, gold is only in an extended sideways move.
