Gold prices are hovering around the $2,306 mark in early May 2024. The precious metal slumped from a high of $2,392 and is down nearly 3.5% in the last 30 days. The XAU/USD chart dipped after the US dollar strengthened by outperforming all leading global currencies in the market. Read here to know how the US dollar battered 22 out of 23 local currencies this year.
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Now that prices of gold are seeing a correction, can it recover quickly and breach the $2,400 wall? In this article, we will highlight how high or low gold prices are predicted to reach this month in May 2024.
Gold Price Estimation For May 2024
A new price prediction forecasts that gold prices might not climb above the $2,400 mark in May 2024. The estimates forecast that gold could turn bearish this month and see a dip in value in the next few weeks. The valuable metal could trade between the price range of $2,163 and 2,227.
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A downward trajectory could take gold prices to reach a level of $2,163, where it could face resistance. The precious metal could hold strong in the $2,227 price range, but if it fails to hold on to its resistance, then the next support could be at $2,163.
“Technical indicators on H4 and D1 time frames signal an upcoming downward correction to 2,087.96 after updating the all-time price high. However, general sentiment remains positive, with a target of around 2,297.26,” predicted Lite Finance.
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So What’s Influencing Gold Prices?
The tensions in the Middle East between Iran, Israel, and Palestine are making the US dollar stronger and gold weaker. Historically, when the US dollar gains, gold dips as investors seek safe haven in the leading currency. On the other hand, if gold rises, the US dollar dips leading to problematic import and export conditions around the world.