Gold prices are rallying towards the $2,000 mark and could climb above the threshold on Wednesday. The precious metal is hovering around $1,998.80 and is only one or two points away from breaching $2,000. The XAU/USD chart had briefly touched $2,000 today but quickly slipped back to the $1,998 level. It is now experiencing a recovery and another leg-up could take its prices above $2,000 today or by the end of the week.
Also Read: Gold Price Prediction December 2023
The highest gold price touched this week was $2,005 with a 1.40% rally. The spike came on the heels of the Feds’ minutes meeting held on Tuesday. The US dollar is trading soft in the charts making the precious metal skyrocket this month in November. The price of gold has jumped nearly 18% in the last 30 trading days.
This week’s highlight is the Federal Open Market Committee (FOMC) meeting that could dictate the next moves of the commodity market. The good news is that inflation in the US is cooling down and currently stands at 3.2%. The Feds remained hawkish this year with their interest rate hikes to bring inflation under control. They still have work to do as the goal is to bring the CPI data under the average 2% threshold.
Also Read: Gold Prices Skyrocket 15 Points Before Fed Meeting
After Reaching $2,000, Gold Prices Poised To Hit $2,100?
A handful of analysts predict that gold prices could reach $2,100 by the end of December this year or Q1 of 2024. Institutional investors are entering the gold market with fears of a recession and a market crash next year. Gold is considered a safe haven and a hedge against inflation in the time of economic crisis.
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In conclusion, the upcoming global market downturn could boost gold prices making it reach new all-time highs. A forecast also suggests that the precious metal could rise by 50% in 2024 and reach the $3,000 mark.