Gold prices are skyrocketing on Thursday after the US dollar cooled down after the Feds FOMC meeting on Wednesday. The XAU/USD Spot gold prices hit $2,208 rising by 22 points with an uptick of 1% in the indices.
Now that gold prices breached the $2,200 mark, how high can the precious metal trade be next? In this article, we will provide a price prediction on the next price target for gold.
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Gold Prices Forecasted To Reach $2,460 Next
The US dollar dipped from 104.20 to 103.55 on Thursday after the Feds FOMC meeting. The DXY Index which measures the US dollar’s performance shows a deep red as the currency slumped. However, a leading economist has predicted that if gold maintains the same momentum, its next target is $2,250.
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The prices of gold could head north before the next interest rate hike during the Q2 of 2024. The economist forecasts gold prices might hit $2,360 before the event. In addition, the highest gold might trade this year is at $2,460, which could be another new all-time high.
“The upper limit of the rectangle at $2,075 is near-term support. Gold has established itself above the upper part of its multi-year range ($2,075) in the form of a rectangle; this denotes the uptrend has resumed. It has also overcome the peak achieved in December. The break from multi-year consolidation points towards the possibility of a larger upside,” said an economist at the Société Générale to FXstreet.
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“The up move is likely to extend towards the next objectives located at projections of $2,250 and $2,360. The target for the rectangle is located at $2,460,” the economist summed it up.
In conclusion, gold could outperform the US dollar, the equities market, and other commodities this year. On the downside, a stop loss for loss is required at the $1,950 level.