The gold market remains an unstoppable juggernaut. So much so that the yellow metal closed the month and quarter at record levels. Analysts state that gold’s performance is quite impressive according to the latest data.
According to analysts, gold will continue to gain value!
cryptokoin.comAs you follow from , gold prices increased by 2.7% compared to last week. Thus, the yellow metal rose to 2,241 dollars. The shiny metal gained 9% on a monthly basis and 8% on a quarterly basis. Gold experienced a significant increase with inflation data. Analysts state that the gold rally continues with the expectation that the Federal Reserve will reduce interest rates. Analysts note that inflation is not as big a threat as it used to be. They also state that the demand for gold increases with the increase in geopolitical risks.
According to some analysts, the dominance of the US dollar in the gold market is decreasing. Additionally, analysts state that gold is a safe haven against global economic uncertainties. Therefore, the tendency towards low interest policy makes gold more attractive. Analysts therefore expect gold to continue gaining value.
““Gold prices rose in response to the Fed’s interest rate cuts.”
Barchart Senior Market Analyst Darin Newsom says gold prices are rising in response to the Fed’s rate cuts. He also states that investors are concerned that inflation will not be controlled. Newsom states that gold is a good safe haven to protect against geopolitical risks. He emphasizes that geopolitical concerns continue to increase and that the US elections to be held in November will further increase these concerns.
Julia Khandoshko: Shiny metal is not expensive!
At the same time, some analysts say that the US dollar is losing its dominance over the gold market as US government debt rises. Julia Khandoshko, CEO of European broker Mind Money, says that gold is not expensive. Khandoshko notes that the real problem is that the government is flooding the global economy with dollars.
Adam Button: It is possible that this level will attract some buyers!
Although the Fed has tried to reduce the amount of money on hand, some data show that the US money supply is still growing. Precious metals analyst David Kranzler states that the US Base Money increased by 10%. He notes that this situation indicates signs of a massive money printing program.
Despite a historic rally in gold prices, there is still a huge value gap in the mining industry. However, analysts state that there is a quiet rally that will encourage gold investors. However, according to analysts, investors should expect a pullback and buy when a pullback occurs. Chief Currency Strategist Adam Button states that gold has initial support at $2,150, which could attract the attention of some buyers.
Ole Hansen: The gold market has upside potential!
Ole Hansen, Head of Commodity Strategy at Saxo Bank, says the gold market has upside potential. He notes that it’s more than momentum that’s driving gold higher. He notes that the gold market continues to attract demand, making it easier for hedge funds to defend their large long positions.
The analyst states that gold has finished a strong trading week. However, he states that next week holds new risks. The March non-farm employment report will be released next week. We will also have US labor market data. In addition, a robust lineup of central bank speakers, including Fed Chairman Jerome Powell, will speak at Stanford’s Forum on Business, Government and Society.
“Macro traders have opportunities to increase their gold holdings!”
Some analysts say stronger employment numbers combined with stubborn inflation could force the Fed to delay the start of its upcoming easing cycle. Commodity analysts at TD Securities make the following assessment:
Macro traders still have opportunities to increase their gold holdings. However, this is only possible if interest rate market expectations are significantly robust. This situation necessitates the arrival of data to support the Fed’s view that it will cut interest rates three times this year. However, the data continues to strengthen, with little change in the FOMC’s tone, increasing the risk of a buyer strike on Treasury bonds. This leads to higher rates, which could put mechanical pressure on the yellow metal through the reaccumulation of short-term buying by macro traders.
Economic data of the week
- Monday: ISM Manufacturing PMI
- Tuesday: JOLTS job postings
- Wednesday: ADP non-farm employment change, ISM Service Sector PMI, Powell will speak
- Thursday: Weekly unemployment applications
- Friday: Non-agricultural employment
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