Despite geopolitical calm, strong central bank purchasing helped gold reach a record high of $2,354. The fact that PBOC continues to increase its gold reserves reflects a global trend. This fuels the rise in the market. David Rosenberg’s $3,000 forecast depends on the actions of central banks and geopolitical tensions.
The impact of central banks on gold prices
cryptokoin.comAs you follow from , the gold price reached its new peak at $2,354. Moreover, it did so despite easing tensions in the Middle East and speculation of a Fed interest rate cut. This jump resulted in global central banks increasing their gold purchases. In particular, the People’s Bank of China’s expansion of its purchasing series supported the rise. In March, the People’s Bank of China (PBOC) increased its gold reserves for the 17th consecutive month, reaching 72.74 million ounces.
According to the World Gold Council (WGC), this action is part of a broader trend in which global central banks’ gold demand is set to rise to 1,037.4 metric tonnes in 2023, approaching a record high of 1,081.9 metric tonnes in 2022. Significant purchases by central banks were an important factor in gold rising to new peaks. It also underlined gold’s status as a vital reserve currency amid geopolitical and economic uncertainties.
Economic indicators and geopolitical tensions
The US Consumer Price Index (CPI) data to be announced in the coming days and the unexpectedly strong employment increase of 303,000 people in March will play a critical role in shaping the Federal Reserve’s interest rate strategy. Additionally, the decrease in tensions in the Middle East, especially between Israel and Hamas, has the potential to affect gold. The FedWatch Tool showed that the probability of the Fed cutting interest rates fell from 62% to 48% in June. Thus, these economic indicators combine with geopolitical changes to present a versatile landscape for gold investors.
Gold’s path to $3,000!
Famous economist David Rosenberg predicts that gold will rise to $ 3,000 due to possible interest rate cuts by central banks and the effect of escalating geopolitical unrest. Rosenberg’s detailed analysis reveals that gold is on a steady climb. It also shows that a move towards $3,000 is more likely than a decline lower. He attributes this bullish outlook to global geopolitical risks as well as the negative correlation between gold and interest rates.
Gold price technical view
Market analyst Arslan Ali looks at the technical outlook for gold. In the Asian session, gold price rose slightly at $2,333.08. Thus, the pivot point takes center stage at $2,353.24. Resistance zones at $2,373.96, $2,394.67, and $2,417.38 indicate potential upside targets. On the downside, the $2,321.37, $2,302.65, and $2,277.15 support levels may attract buyers, especially near the $2,300 area, which is known for its historical buying activity.
Technical indicators such as the 50-day EMA at $2,261.47 and the 200-day EMA at $2,169.41 underline the overall bullish trend. However, the recent test near the $2,353 resistance indicates a potential correction. Breaking above this resistance strengthens the uptrend. However, a break below $2,325 would indicate a downward change in market dynamics.
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