Gold prices are turning the market wheels around and are gaining massive market momentum, with its price showing a positive uptrend. The yellow metal has breached the $2,200 threshold, leaving its contemporaries behind.
The resurgence of gold has also proven beneficial for silver, which is trading at $25 an ounce. With a positive uptrend in the mix, gold is currently riding the market wave, with analysts projecting its price to cross past $2300 in April.
Also Read: The Fed’s Impact on Gold Prices: Here’s What You Need To Know!
Why Is Gold Rising?
Gold has long been a robust store of value. With a weak USD projection taking over the world, investors seem to be pivoting toward other lucrative assets to earn revenue. Presently, the Federal Reserve rate cut scenario is amping up the prices of gold, saturating the USD’s prestige in half.
Earlier, analysts at BMO Capital Market had predicted the price of gold would average $2,169 throughout the year. In an interesting turn of events, Gold was quick to recover its pace, achieving the coveted price mark in Q1 2024.
“The bank’s commodity analysts see gold prices averaging this year around $2,169 an ounce, up 11% from its previous forecast.”
If Gold continues to leverage the market momentum, it could soon climb to new highs, leaving investors reeling for more.
“Gold prices are expected to average around $2,000 an ounce in 2026 and $1,950 in 2027, an increase of 8% and 3%, respectively, from the December estimates,” the report later adds.
Gold May Shine its Brightest in April
The weak USD prospects have bolstered the demand for gold. With currencies weakening and losing their grip, the idea of gold as a robust store of value is catching pace with the masses.
Rashad Hajiyev, a notable financial analyst, has predicted a new ATH of gold to be breached in April. Per Hajiyev, Gold may soon cross the $2200 mark next month.
Hajiyev predicts gold to average around $2200–$2400 in April, while encountering a slightly mellow pace in May.
“Gold broke out from a multi-year resistance in March 2024, just like it did in June of 2019. Back then, gold never retraced for a retest as breakouts were so powerful. The metal rallied 14% in a straight line, paused to consolidate for 3 months, and then added another 40% within 8 months. This time around, gold could repeat a similar price pattern, but in a shorter period of time. I expect gold to reach my $2,350–2,400 target already in April.” The analyst noted
Also Read: Currency Wars: Declining USD Bolsters Prospects for Gold and Silver
Gold’s Massive Uptick Due in August
Hajiyev later emphasized the gold price prediction for May, June, and August. Speaking about Gold’s massive breakout, the analyst shared how he believes August will be the month when Gold will enter the $2700 per ounce threshold.
“Gold will take a pause during May-June to consolidate gains, with a final parabolic rally taking gold to $2,700-$3,000 by August-September of 2024.” The analyst later shared.
What’s Driving The Value Of Gold?
A variety of factors are driving the gold’s bullish breakout. The yellow metal is gaining investor confidence amid the weakening of the USD as a stellar store of value. The USD is in shambles, primarily due to the US debt metrics that are rising at a record high.
The metrics are hampering USD’s advancement, compelling investors to opt for stable assets like gold to maximize returns. With news of the Federal Reserve hiking interest rates, the looming fear of inflation is also forcing investors to pivot to gold.