Gold prices spiked nearly 40% in the last six months and rallied hard in the charts this year. The precious metal is attracting heavy bullish sentiments with both retail and institutional holders investing heavily across the globe. The XAU/USD Spot Gold prices is now hovering around the $2,355 mark on Wednesday after hitting a day’s high of $2.363. It surged by more than 2 points on Wednesday with a spike of 0.08% in the indices.
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A Target of $2,500 On the Cards For Gold Prices
A new target for the XAU/USD Spot Gold prices is set at $2,500 this month in April 2024. Several analysts indicate that gold prices could breach the $2,500 mark before retracing in price to the current level. That’s an uptick and return on investment (ROI) of approximately 6% from its current price of $2,355.
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Therefore, an investment of $10,000 could turn into $10,600 this month if the gold price prediction turns out accurate. However, there is no guarantee that the precious metal could breach the $2,500 mark in April 2024. The commodity market is influenced by global affairs and a conflict anywhere in the world can cause its prices to spiral down.
“While short-term consolidation is possible, the outlook remains bullish, with projections extending towards 2,500. Compared to the stock market, gold seems far from overpriced,” said Ole Hansen, Head of Commodities Strategy at Saxo Bank. Read here for a realistic prediction on when gold prices could reach the $7,000 mark.
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The prices are already under pressure due to the strengthening of the US dollar this year. The US dollar’s DXY index climbed above 104 points on Wednesday despite facing several odds from surging gold prices. The dollar spiked from a low of 101 points to 104 in three months leading to the US market’s brief recovery.