5 Bomb Predictions for Gold Price: We Are In These Numbers In December!

Gold is consolidating at the $1,960 levels after climbing above $2,000 in anticipation of the Federal Reserve being unable to go any further. However, US inflation is well above the Fed’s 2% target, raising questions about a Fed pivot. So, what route will the yellow metal follow in such an environment?

Gold price may reach these levels sooner than expected

Gold is likely to benefit from its safe-haven appeal in more uncertain markets, according to UBS economists. Economists state that gold has already gained due to recent market volatility, with the spot price hitting a 12-month high above $2,000. In this context, economists make the following statement:

Meanwhile, gold exchange-traded funds look set to post net inflows in March for the first time in almost a year. Given recent events, we think there is a chance that gold prices will reach our end-March 2024 target of $2,100 sooner than expected. While a recurrence of the global financial crisis seems to have been averted, it will take time to fully restore investor confidence.

Gold may see more weakness in defending 55-DMA

cryptocoin.comAs you follow, gold remained below record levels of $2,070/2075 and started a short-term consolidation. A sustained move above $2,000/10 is needed to rekindle the upside pressure, according to the report by Credit Suisse economists. In this direction, economists draw attention to the following levels:

A sustained move above $2,000/10 is needed to pave the way for a retest of long-term resistance from the record highs of $2,070/75 in 2020 and 2022. While this should be clearly respected, a clear and sustained break higher would open the door to the next $2,300 move. Ideally, the 55-DMA currently seen at $1,891 is currently bottoming the market. If this breaks, we could see more weakness towards the last low of $1,805 before the critical 200-DMA, currently seen at $1,781 and which we expect to form the floor once again.

These developments will trigger testing of new records under

According to MKS PAMP’s updated price forecasts, the failure of Silicon Valley Bank and Signature Bank is a game changer for gold as it confirms the Federal Reserve has broken something vital at its fastest pace of tightening in decades. The firm revised its gold 2023 average price projection upwards by $50. Thus, it raised its gold price expectation by $50 to $1,930.

Prices will hit all-time highs this year, according to Nicky Shiels, head of metals strategy at MKS PAMP, but belief lies in higher bottoms against runaway upside repricing. While the Fed aggressively raised interest rates last year to rein in inflation and slashed the base policy rate from around zero to the 4.75%-5% range, many warned that something was going to break in the economy. Now, the markets are seeing the evidence. Shiels points out that the consequences of these regional bank failures will trigger testing of new record levels below. Shiels explains these views as follows:

March’s developments formally confirm that the Fed has broken something more important in the broader financial markets. The Fed will have to choose between higher inflation, a harder landing, or financial instability. All results will keep the safe-havens in play and gold prices will likely retest this year and pierce all-time highs ($2,070).

Bank of Canada raises gold price forecast for 2023

Physical demand for gold is expected to be strong, pushing gold prices above $2,000 in the next three months, as investors seek safe-haven assets to ward off the growing banking crisis, according to commodity analysts at BMO Capital Markets. On Wednesday, the Bank of Canada raised its gold price forecast for 2023.

Analysts forecast gold prices to average $1,906 for the year, up 13% from the previous estimate. BMO predicts that the gold market will peak at an average of $1,950 in the third quarter, up 17% from its latest forecast. Looking further, the bank raised gold prices by 7% and said long-term prices would average around $1,500. “We revised our gold forecasts against a backdrop of stronger physical demand and broader uncertainty and financial instability that have lowered interest rate expectations,” analysts said in the report.

ING expects first pullback, then rise

Dutch bank ING said gold could average $2,000 in the fourth quarter of this year as speculators increase their risks and the Federal Reserve cuts interest rates. However, Warren Patterson, ING’s head of commodities strategy, says some pullback for gold is inevitable after the massive rally over the past three weeks. However, he notes that there is enough room for prices to rise further in the second half of the year. In this context, Patterson makes the following statement:

While we expect a decline in prices in the short term, we predict that gold prices will increase compared to the second half of 2023. Accordingly, we expect spot gold to average $2,000 in the 4th quarter of 2023. The assumptions around this are that we are not seeing any further deterioration in the banking sector and the Fed has started cutting interest rates towards the end of this year.

Patterson breaks his gold speculative position for a peek behind the curtain. CFTC data shows that speculators have increased their net longs under COMEX in recent weeks. Patterson notes that speculators increased their positions late last year and early this year in anticipation that the Fed is not far from the highest federal funds rate. But there is still room for more speculative positions. And the right trigger would be continued banking sector concerns and a Fed axis.

Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!