Market participants expect the FED to cut rates in the near future. It may push the gold price forward. Besides, growing geopolitical uncertainty is Kiley to boost safe-haven demand in the yellow metal.
This week, the gold market ended at $2,050. That looked like the asset was testing the resistance level. Some experts say the precious metal still has enough room to move higher. What we see now is bursting bullish momentum that only starts picking up.
February gold futures prices haven’t changed since last Friday. They are traded at $2,047 per ounce. Despite the fact the asset did not make any gains this week, investors should feel optimistic, as the old price moved far from its 4-week lows back on Monday.
Although experts do not predict crucial breakout rallies soon, go9ld is seeing a growing safe-haven demand. Market participants look for an insurance asset that would keep them safe in times of geopolitical uncertainty. Besides, the FED is said to cut rates sooner than expected. Even with relatively high inflation, analysts point out that low producer prices portend a decline in consumer prices.
The yield on the U.S. 10-year dropped below 4% due to rising market expectations, and the 2-year yield reached an eight-month low. Gold is benefiting from the decline in bond yields.
Even though momentum is picking up, the market is still a way off from reaching its all-time highs from last month. Not all analysts, though, believe that gold prices will rise. Commerzbank economists stated that they continue to anticipate a rate reduction from the Federal Reserve only in May.
May the trading luck be with you!
