GOLD BULLISH OUTLOOK

21 нояб. 2023 г.

Recent market analysis suggests a promising trajectory for gold prices, with expectations of a potential surge to $2,100 in late 2023 or early 2024, as highlighted by economists at TD Securities. This optimistic outlook stems from a confluence of factors, notably a projected dovish pivot by the Federal Reserve following a period of restrictive policies. Escalating geopolitical tensions in the Middle East, exemplified by the recent Gaza bombings, have bolstered the appeal of safe-haven assets like gold. Analysts anticipate increased demand for bullion amidst these geopolitical headwinds, fostering a favorable environment for gold prices in the coming months. Moreover, the likelihood of a US economic recession further underscores gold's attractiveness as a reliable store of value, potentially driving its price higher. Historically, gold has excelled during periods of economic uncertainty, with its peak at $2,072.5 in August 2020 during the height of the pandemic exemplifying its role as a haven asset during turbulent times.

The TD Securities economists' bullish stance on gold is grounded in expectations of a more dovish approach by the Federal Reserve due to easing inflation rates and Treasury yields, signaling a shift in interest rate policies. This potential dovish pivot is seen as a catalyst that could sustainably lift gold prices to the projected $2,100 level. Amidst these predictions, some analysts foresee gold potentially reaching as high as $2,500 by the end of 2024, emphasizing its reliability during economic turmoil. The historical performance of gold during periods of economic distress, combined with escalating geopolitical uncertainties and the potential shift in Federal Reserve policies, underpin the positive sentiment surrounding gold's future trajectory, indicating a bullish outlook for the precious metal in the upcoming years.

On the technical side, MACD and RSI both are showing BUY signals, further confirming the bullish outlook.
If the current trend continues, the price might reach levels of 2056.80. As a pivot point might be considered 1975.89, from where the price might drop to support levels of 1946.45

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