Gold Daily | Gold Dips 0.5% on Strong Dollar; Analysts Predict Bullish Trends Amid Economic Shifts
Monday, Oct 28, 2024 8:00 am ET
1min read 【Latest Gold Price and Recent Trends】
Gold prices have decreased by 0.5% to around $2731, following a strong dollar. Investors await U.S. economic data to gauge Fed policy. Last week, prices hit a record $2758.37.
【Technical Analysis】
Gold displayed weakness below $2750 but remains a "buy on dips" as long as it stays above the 38.2% Fibonacci level. If it breaks $2723, it may decline further to $2700 and $2681.
【Market Sentiment and Economic Background】
The strong dollar and high U.S. bond yields are pressuring gold. Traders expect a 98% chance of the Fed cutting rates by 25 basis points in November. Meanwhile, geopolitical tensions and U.S. election uncertainties support gold as a hedge. China's gold demand has dropped due to high prices and economic slowdown.
【Analyst Opinions】
El-Erian notes that gold's record highs reflect a diversification away from the dollar. He cites central banks' slow diversification and the shift in payment systems as key drivers. Despite challenges, gold's upward momentum is strong, supported by geopolitical tensions and potential economic shifts.Citi's Max Layton sees a favorable environment for gold and silver, predicting significant gains as Western economies slow while China's stimulus could boost growth. U.S. and Europe’s weak market performance combined with China's potential strength create a robust bullish setup for precious metals. Analysts predict gold could reach $3000 by next year.
Gold prices have decreased by 0.5% to around $2731, following a strong dollar. Investors await U.S. economic data to gauge Fed policy. Last week, prices hit a record $2758.37.
【Technical Analysis】
Gold displayed weakness below $2750 but remains a "buy on dips" as long as it stays above the 38.2% Fibonacci level. If it breaks $2723, it may decline further to $2700 and $2681.
【Market Sentiment and Economic Background】
The strong dollar and high U.S. bond yields are pressuring gold. Traders expect a 98% chance of the Fed cutting rates by 25 basis points in November. Meanwhile, geopolitical tensions and U.S. election uncertainties support gold as a hedge. China's gold demand has dropped due to high prices and economic slowdown.
【Analyst Opinions】
El-Erian notes that gold's record highs reflect a diversification away from the dollar. He cites central banks' slow diversification and the shift in payment systems as key drivers. Despite challenges, gold's upward momentum is strong, supported by geopolitical tensions and potential economic shifts.Citi's Max Layton sees a favorable environment for gold and silver, predicting significant gains as Western economies slow while China's stimulus could boost growth. U.S. and Europe’s weak market performance combined with China's potential strength create a robust bullish setup for precious metals. Analysts predict gold could reach $3000 by next year.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
