The price of gold is showing a positive uptrend, compelling investors to pick sides. With faith in USD as a currency dwindling, gold and silver have lately emerged as solid support systems and robust stores of value.
With Gold’s recent bullish outbreak, it is now coming out of its consolidation phase and entering a positive uptrend. The price has already breached the $2,100 mark, leading analysts to forecast new price projections for the yellow metal.
Also Read: Currency Wars: Declining USD Bolsters Prospects for Gold and Silver
Gold Jeopardizing USD?
The US Dollar has lately been a topic of despair among analysts and financial experts. The currency’s dwindling value and declining purchasing power are compelling investors to look for other robust options.
The official data about the US economy shows consistent signs of erosion, with US debt amounting to $34 trillion. The markers have collectively impacted the prestige of the USD, urging banks to relocate funds with solid returns and potential.
Per a recent analysis by Game of Trades, an expert panel on X, nearly 55 central banks around the world have slashed interest rates in the past 6 months.
The metrics signal the economic crisis and inflationary pressure that the regions are currently battling with. The analyst accentuated the fact that it’s a matter of time before the FED reveals new interest rate metrics, impacting the economic stature of the US holistically.
Also Read: The Fed’s Impact on Gold Prices: Here’s What You Need To Know!
The anticipation of potential Federal Reserve interest rate cuts has already started to show results. The prices of gold have already started to break out, signaling a pivot of investors towards gold and silver as solid stores of value.
Gold to Breach $2500?
Game of Trades posted another interesting insight on X, claiming that the price of gold will soon reach $2500. The analyst noted how the candlestick chart of Gold confirms an “inverse head and shoulders breakout.”
In trading analogy, a head and shoulders breakout signals a bullish to a bearish trend reversal. On the contrary, an inverse head-and-shoulders pattern entails a bullish reversal pattern after a downtrend. If the momentum continues to ascend higher, the prices of gold can explode, leading the USD to take a fall back.
This development has further gained strength after a recent report by BMO Capital Markets predicted the prices of gold and silver to peak amid a weakening currency crisis.