Gold Forecasts Suggests A Bullish Target

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Gold Forecasts Suggests A Bullish Target

Gold Forecasts Suggests $2500 As Next Target

What should be the next reasonable target for Spot Gold? According to some experts, there's a good chance that the yellow metal will touch the $2500 price level. As of right now, the sentiment in spot gold is still bullish, as it is trading at record highs.

It appears that the strength of gold is coming from changed dynamics in the USA, which are related to the demand for safe havens and the borrowing rate.

Gold Benefits From Save Haven Demand

Additionally, geopolitical tensions are at an all-time high when compared with the last few years. So, that's also a factor that encourages flow into safe haven assets like gold and silver.

Another factor that is playing in favor of the spot gold is the recent steep decline seen in the greenback. If we look at the DXY, it is already down to its weekly lows, as many signs hint at rate cuts happening in July or September at best.

According to VanEck's strategist, Gold appears to be benefiting a lot from the recent rumors of a potential pivot from Fed. He added that Gold's performance has always been great during the periods of high price inflation. So as long as the inflation stays beyond the 2% Fed target, Gold will remain supported.

As of right now, the price of spot gold is near $2292.19/ounce, just a little below the $2302 resistance level. As for the Gold futures (June), the trading price is $2312.15, with a mostly bullish bias.

Now, the biggest question is where the Gold prices are headed in 2024. According to one expert, a target of $2500 seems very reasonable.

Similarly, Bank of America has also shared its views regarding the spot gold prices in the year 2024. According to them, a target of $2400 is highly likely this year.

For now, the Spot gold is trading near the $2330 with the $2300 acting as support while the $2400 is acting as the nearest resistance level.

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