Gold Price Movements: Analyst Insights and Analysis
Updated: Aug 2
Golden Opportunities: Navigating the Future of Precious Metals
Gold, a precious metal with a long history as one of the most important investment forms and valuable commodities, continues to attract the attention of economists and investors worldwide. Recently, when the price of gold dropped to $1950 per ounce, renowned financial institutions released their predictions regarding the future of this metal. Analyzing diverse data and indicators, experts point out various factors influencing the price of gold, leading to different scenarios.
Impact of US Data on Gold Price
Some economists believe that the decline in gold prices is due to the pressure from economic data originating from the USA. If these data worsen, it may have a negative impact on the gold price. On the other hand, if the data turns out to be favorable, it could support the prices of this precious metal. Ultimately, forecasts regarding economic data are one of the key factors influencing the behavior of the gold market.
Expected Fed Interest Rate Hikes
The July interest rate hike by the Federal Reserve System (Fed) raises concerns among investors. Current increases in oil prices indicate that the pace of deflation may decrease, posing a risk of higher interest rates. As other central banks also tighten their monetary policies, gold will continue to be under pressure. However, the significant catalyst for a substantial increase in gold prices will be a substantial weakening of economic conditions.
US Economic Data and Fed Policy
US economic data plays a crucial role in the price of gold as it impacts the monetary policy of the Federal Reserve. It is expected that the Fed's policy will gradually become more "dovish," meaning planned interest rate cuts, which is favorable for precious metals, including gold. Economic data from the USA will undoubtedly be closely observed in the upcoming days and weeks as a key factor influencing gold prices.
Credit Suisse Forecasts
Credit Suisse analysts, analyzing the technical situation in the gold market, indicate the possibility of further price increases for this metal. They believe that gold has the potential to reach record levels, such as $2150 and $2355/65. However, there is also a second scenario assuming price consolidation if the gold price closes below $1883. In that case, the market may move between $1810 and $2075 in the long term.
Observing Recent Moves in the Gold Market
Recently, the gold market reached the level of $1944-$1967. Currently, gold is attempting to surpass this range along with testing the SMA 88 average. Although there is potential for growth, the gold market may encounter challenges in overcoming this price range. There is a possibility that the gold price may retrace to the SMA 200 average.
In conclusion, forecasts regarding the future of gold are diverse, and much depends on economic data, monetary policy, and other global factors. Investors and experts are closely observing changes in the market to make informed investment decisions.
1.What are the main factors influencing the price of gold?
The main factors are US economic data, Fed's monetary policy, oil prices, and economic conditions.
2.Are economists' forecasts aligned regarding the future of gold?
No, forecasts vary, and much depends on different factors.
3.What scenario do Credit Suisse analysts predict for the gold price?
Credit Suisse analysts predict the possibility of further price increases to record levels or price consolidation, depending on the market's behavior.
4.Why are US economic data important for the gold price?
US economic data influences the Fed's monetary policy, and interest rate cuts are favorable for precious metals, including gold.
5.Will the gold price have an upward trend in the future?
It depends on various factors that will impact the market in the coming days and weeks.
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