As the demand for the dollar increased again, the gold price began to lose its luster among investors. The shiny metal had an extraordinarily bullish April, where it hit an all-time high. However, it then moved in a consolidation chart formation in May. So what do analysts say about it rising to much higher levels?
According to Mike McGlone, the gold price will reach 3 thousand dollars!
cryptokoin.comAs you follow from , US April nonfarm payrolls came in at 175,000, contrary to expectations of 238,000. This increased bets that the Federal Reserve would loosen interest policy. Therefore, this is likely to lead to a recovery in gold prices as it becomes more affordable for foreign buyers.
In addition, rising demand from Asian markets, continued central bank purchasing and the precious metal’s safe-haven status amid ongoing geopolitical turmoil in the Middle East are likely to support the rise. Bloomberg’s senior commodities expert Mike McGlone is also confident that gold will reach the $3,000 price tag thanks to the combination of two financial indicators. In this context, McGlone says:
Gold is $3,000, Crude Oil is $50, Copper and Corn are $4, and the S&P 500 is $5,000. The commodity’s viability may depend on the S&P 500 remaining above 5,000. The fact that beta could drop 10% below that and still be in an uptrend from the 2020 low could increase commodity deflation risks. The path for gold to fall to $3,000, WTI crude oil to $50 per barrel, and copper and corn below $4 per pound/bushel may become easier if the index exceeds the 5,000 support.
Citigroup analysts expect 3 thousand dollars within 6 to 18 months!
Price increases will be driven by the start of the Fed’s rate-cutting cycle or potential recession, as well as increased flows from central banks in Asia and managed money players that are showing signs of catching up with demand from consumers, experts say. Citigroup analysts have predicted that gold will surpass $3,000 in the next 6 to 18 months. Analysts say that “geopolitical temperature” will play an important role in this. In this regard, analysts share the following assessment:
Gold’s recent rise has been aided by geopolitical heat and coincides with record stock index levels. (…) We predict a gold price of $3,000 in the next 6-18 months.
Gold price technical analysis
Market analyst Ana Zirojevic looks at the short-term technical picture of gold. Meanwhile, the yellow metal is still holding above the 100-day exponential moving average (EMA). Moreover, the 14-day relative strength index (RSI) is at 58. However, the shorter-term outlook is negative. Moreover, it remains within a descending trend channel since ATH. If gold breaks out of this channel, it will first surpass the $2,350 – $2,355 zone at the end of April. Following this, $2,400 will emerge as the next resistance. If it manages to pass this, gold will face the next hurdle at the ATH level of $2,431.52.
It is possible that the gold price may indeed reach the $3,000 price in the future. But this may take some time, given the largely bearish trend on recent charts and the lack of upcoming catalysts that would move markets significantly in any direction.
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