A bull flag pattern broke out in the XAU/USD charts last week, indicating that a rally for gold is on the cards. The precious metal is trading around the $2,750 mark on Wednesday and is up by nearly 2 points in the day’s trade, surging by 0.07%. Gold price predictions are turning stronger this month as the metal is performing better than expectations.
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The bull flag pattern is making investors go bullish on gold as forecasts project a rally. The sign of strength comes after the metal delivered consistent returns in over two years. This year alone, gold prices have spiked 28% year-to-date and are among the top performers in the markets. The price prediction for gold now puts it above the $2,800 mark next.
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Bull Flag Breakout: Gold Price Prediction Placed at $2,815
The recent bull flag breakout has put gold price prediction for the short team at $2,815. That’s an uptick and return on investment (ROI) of approximately 2.5% from its current price of $2,750.
Therefore, an investment of $10,000 could turn into $10,250 if the gold price prediction is accurate. The development increases the prospects of gold as the ‘buy’ call is only growing each month.
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If gold hits $2,815, the precious metal will next gear up for the $2,900 level. The bulls are focused on pushing gold to $3,000 and several price predictions claim it could reach there in 2025.
A recent price prediction for gold from Goldman Sachs indicates that the metal could reach $3,000 in 2024. Therefore, an investment made today in the asset could deliver decent returns by the end of 2025. Apart from gold, commodities like silver, copper, and the US dollar are generating massive returns to investors this year.
The demand for these commodities has barely dipped and is only increasing in the broader markets. Commodities outperformed the equity markets in 2024, and the phenomenon could continue in 2025.