The gold price follows a fluctuating course with the decline in the dollar and the decline in Treasury bond yields. Fed decisions and next week’s CPI data stand out as important determinants. Adrian Day, Chairman and CEO of Adrian Day Asset Management, says a recession would be positive for gold.
Definitely owning gold in a recession required!
Adrian Day cites a chart showing all the recessions dating back to the 1960s. Gold prices rose in every recession except one. During most recessions, gold stocks have risen, gaining as much as 200 percent in some cases. In this context, Day comments:
The lesson for me is clear. In a recession, you definitely want to own gold, and you probably want to own gold stocks. But you definitely want to own gold stocks rather than the broad market.
When the gold price reaches $2,100, people will return very quickly!
Adrian Day notes that the last few years have been unusual, with gold being the only strong performer among gold and silver assets, including coins and stocks. cryptokoin.comAs you follow from , the gold price was supported by central bank purchases. Day has no doubt that the Fed will cut interest rates this year. Based on this, Day says, “If gold reaches $2,100, people will start to return very quickly.”
Short-term market outlook
Market analyst James Hyerczyk evaluates the short-term outlook and technical picture of gold. In the short term, the outlook for gold prices remains positive, influenced by these economic indicators and monetary policy expectations.
It would be beneficial for investors to closely follow the statements of Fed members and future economic data, especially inflation figures. Because these will play an important role in shaping the price movements of gold in the near future. The current market trend points to a continuous increase in gold prices. However, it is possible that this situation may change depending on evolving economic and Fed policy conditions.
Gold price technical analysis
Gold is currently trading at its 50-day moving average of $2,033.57. This price controls both short-term and intermediate trends. A sustained move above the 50-day MA will indicate the presence of buyers. If this increases momentum, a rally towards the recent resistance at $2,067.00 is possible. This price is also a potential trigger point for upward momentum.
Conversely, failure to break above the 50-day MA will indicate the presence of sellers. This could trigger a breakout of the support at $2,009.00 in the short term. This is also a potential trigger point for a downside acceleration with the 200-day moving average currently at $2065.94. So, the next major downside target price for gold.
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