Amid positive sentiments from the Federal Reserve regarding interest rate cuts, the gold price is set to surpass $2050, with experts expecting no downward correction in sight. Indeed, the metal has seen increased volatility since its all-time high in early December. However, it could be poised for a continued upswing into the new year.
Currently, the gold price is trading at $2038, up more than 0.5% over the last 24 hours. However, some forecasters believe the asset could reach last week’s high of $2048. Subsequently, it is set to face a key resistance level at that price, with support emerging at $2027.
Also Read: Gold Price Predicted To Hit $2,150, Here’s When
Gold Price Approaching $2050 With No Reverse Correction Impending
The entire gold market has seen massive developments this month, despite growing instability in price. Indeed, on December 4th, the asset reached a new all-time high of $2150. Moreover, the metal had not reached similar levels since 2020, marking a massive return to form.
Yet, the price quickly retreated, falling back below the $2100 mark. However, since then, it has been slowly crawling back. Although there is no expectation of a bullish breakout, the gold price is set to surpass $2050 with no downward correction in sight. Ultimately, this leads to what should be an overall positive end to 2023.
Also Read: Gold Prices Reach 1-Week High: Will It Reclaim $2,100 Next?
Strategists at Commerzbank noted that the metal could be in for a positive performance throughout this week. This comes despite the Federal Reserve noting uncertainly as to when interest rate cuts could come to fruition. Strategists stated that, “According to [New York Fed President John] Williams, it is too early to think about easing monetary policy at the current time.”
“All in all, however, it is presumably still just a question of time before the US Federal Reserve lowers its interest rates,” they added. Thereafter, they stated, “We see no reason for any significant downward correction of the gold price in the foreseeable future.” Meanwhile, the metal is expected to be back on track for renewed highs throughout the coming year.