After reaching an all-time high of $2150 in December, Gold has seen a price correction to start the new year. However, there remains high hope that the assert could return to an upward trajectory over the next couple of months. Still, in the short term, the gold price could continue to drop with a price of $2250 in play for 2024.
Giovanni Staunovo of UBS recently discussed the new highs that the metal could achieve throughout this year. Specifically, he identified the impending interest rate cuts by the Federal REserve as a crucial catalyst. Currently, there stands a 62% chance that those cuts begin at the agency’s March policy meeting.
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Gold Price Could Fall More Before Epic Climb to New Heights
For the last few months of 2023, the price of Gold had seen a massive shift upward. That ultimately culminated in a new all-time high for the asset, as it achieved its highest levels since 20202. Although it has experienced somewhat of a projection, there is still tremendous optimism around its future performance.
Currently, Gold is trading at $2042, and has been steady for much of the last day. Subsequently, some experts have predicted that the gold price could continue to drop, while a reverse upward to $2250 is still very much in play for 2024. Specifically, it all has to do with the ongoing economic circumstances of the United States.
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Bruce Powers, the Technical Analyst and Global Market Strategist at FX Empire noted the downturn and its overall impact on the metal. Specifically, he said there are “no signs” that holding support is inevitable in the short term. Thereafter, he stated that a “deeper retracement” is expected but, “not by much.”
Additionally, Powers noted that “it seems like gold is going to make a run for new highs in the foreseeable future,” based on technical analysts. Moreover, that coincides with Staunovo’s perspective of the metals price.
“We expect with the FEd implementing several rate cuts this year, this should bring back financial investors via ETF and bar demand and lift the price of gold to $2250 per ounce by the end of the year,” Staunovo predicted. Altogether, a retracement should partner well with the impending rate cuts. Ultimately, working in cohesion to propel the asset even higher.