Gold Prices Reach 1-Week High: Will It Reclaim $2,100 Next?

Vignesh Karunanidhi
Gold (XAU/USD) Remain Rangebound, Stays Above $2,030

Gold prices have surged to a one-week high, eclipsing the $2037 mark, signaling a robust comeback for the precious metal. The market conditions have injected fresh momentum into gold, offering a glimpse of optimism for higher prices in 2024.

The precious metal struggled to break the $1980 mark in previous days but has now found renewed support, aligning with optimistic forecasts for 2024.

Daniel Ghali, commodity strategist at TD Securities, told Moneycontrol, “Fed’s dovish pivot was telegraphed over yesterday’s FOMC meeting and very pragmatically gave a green light for markets to price in a more aggressive Fed cutting cycle on the horizon, and we expect that the market will run with it.” Ghali emphasized the positive impact on gold prices. He cites increased investor demand as a key factor supporting the rally toward new all-time highs.

Also read: Is FED Interest Rates Cut in 2024 a Positive Sign for Crypto?

Will Gold reclaim $2,100?

UBS analyst Giovanni Staunovo echoed the positive sentiment, stating, “We retain a positive outlook for gold, targeting a price of $2,250 per ounce by the end of 2024.” This forecast aligns with earlier projections that saw gold reach new heights earlier this month. Gold was trading at $2150 in a noteworthy surge.

While the metal faced a subsequent correction, struggling to maintain momentum beyond the $1980 level, recent market dynamics have reignited its upward trajectory. The heightened volatility is a reflection of uncertain economic developments, but gold seems poised to overcome challenges and pursue new highs as 2024 unfolds.

The recent resurgence in gold prices demonstrates its resilience. Thus, investor confidence in it as a safe-haven asset amid volatile market conditions will grow. With predictions by analysts pointing out a bullish price level, gold is most likely to reclaim $2,100 next.