Gold Daily | Gold Rebounds Amid Dollar Pause and Geopolitical Tensions, Analysts Forecast Record Highs
Monday, Nov 18, 2024 7:00 am ET
1min read 【Latest Gold Price and Recent Trends】
International gold prices rebounded to around $2585 after six consecutive days of decline, driven by a pause in the U.S. dollar's rally and geopolitical tensions between Russia and Ukraine.
【Technical Analysis】
Gold has tested the key 100-day moving average, indicating a moderate pullback within its strong uptrend this year. Short-term resistance is seen near $2596.63, with current efforts to establish a base strengthened by technical support around $2548.00.
【Market Sentiment and Economic Background】
The latest U.S. economic data has reduced expectations for a Federal Reserve rate cut in December. High interest rates have dampened gold's appeal as they do not generate interest income. President Trump's policies might lead to sustained dollar strength but could also drive long-term inflation, benefiting gold. Geopolitical tensions, including those involving Ukraine and the Middle East, have increased safe-haven flows into gold.
【Analyst Opinions】
Analysts suggest gold prices may see volatility toward year-end, with opportunities for profit-taking. Goldman Sachs predicts record highs next year, driven by central bank buying and potential Fed rate cuts. They advocate 'investing in gold,' anticipating a rise to $3000 per ounce by December 2025. Despite short-term challenges, the structural demand for gold remains strong amid ongoing geopolitical risks and potential policy shifts under the Trump administration.
International gold prices rebounded to around $2585 after six consecutive days of decline, driven by a pause in the U.S. dollar's rally and geopolitical tensions between Russia and Ukraine.
【Technical Analysis】
Gold has tested the key 100-day moving average, indicating a moderate pullback within its strong uptrend this year. Short-term resistance is seen near $2596.63, with current efforts to establish a base strengthened by technical support around $2548.00.
【Market Sentiment and Economic Background】
The latest U.S. economic data has reduced expectations for a Federal Reserve rate cut in December. High interest rates have dampened gold's appeal as they do not generate interest income. President Trump's policies might lead to sustained dollar strength but could also drive long-term inflation, benefiting gold. Geopolitical tensions, including those involving Ukraine and the Middle East, have increased safe-haven flows into gold.
【Analyst Opinions】
Analysts suggest gold prices may see volatility toward year-end, with opportunities for profit-taking. Goldman Sachs predicts record highs next year, driven by central bank buying and potential Fed rate cuts. They advocate 'investing in gold,' anticipating a rise to $3000 per ounce by December 2025. Despite short-term challenges, the structural demand for gold remains strong amid ongoing geopolitical risks and potential policy shifts under the Trump administration.
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.