Precious metals markets are at the mercy of geopolitical uncertainty as gold prices consolidate below $1,900 in holiday trading. However, the last minute developments in the Russia-Ukraine tension pushed the yellow metal back above $1,900. In line with these developments, analysts’ market comments and price predictions cryptocoin.com compiled for our readers.
“If tensions ease, gold prices will easily recede to around $1,850”
Gold prices rose to $1,910.80 per night as investors digested over the weekend news that Russia and Belarus will extend their military exercises, which are expected to end on Sunday. However, precious metal prices fell from session highs after news that French President Emmanuel Macron had proposed summit talks between Russia and the United States. However, both sides formally agreed to the talks.
Looking ahead, most analysts say gold prices have a chance to gain over $1,900 if geopolitical tensions continue to rise. On the other side of the argument, analysts say gold prices could easily give up on recent gains if tensions start to ease. In a recent interview with Blue Line Futures chief market strategist Phillip Streible, geopolitical tensions accounted for about 2% of gold’s recent move:
If tensions start to ease, gold prices could easily retest support near $1,850.
İpek Özkardeşkaya: If things go bad, gold could rise to $ 2,000
Swissquote senior analyst İpek Özkardeşkaya also notes that gold’s price action this week will depend on what happens in Eastern Europe:
If there is a sustainable solution at the border, the yellow metal could quickly undo the gains associated with Ukraine. But if things go bad, gold won’t hesitate to rise as high as it should, including the possibility of a rise to $2,000. But that’s not the base case scenario.
“Continuous evidence of inflation could cause yellow metal to rise”
However, some analysts ignore the market uncertainty created between the US and Russia and continue to focus on the threat of inflation. DailyFx market strategist David Song says he thinks gold prices could hit the $1,917 target if the Personal Consumption Expenditure (PCE) Index shows inflation higher than expected last month:
Evidence of sustained inflation could push gold prices higher ahead of the next Fed rate decision on March 16. It remains to be seen whether the central bank will change its exit strategy as price growth remains well above the 2% target.
Analysts say that if the US central bank falls behind the inflation curve, gold will remain an attractive asset as real interest rates will remain in negative territory.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.