The most precious yellow metal of all time, gold, has recovered from its modest price fall caused by the Federal Reserve’s decision to cut interest rates. The asset dipped 0.4% after the rate cut announcement but has recovered steadily and is trading at $2,597.
Also Read: Dogecoin Eyes Massive Rally: Can Doge Break $0.11 Level This Weekend?
The Gold Is Going Up Again: What Does This Mean?
Notable financial analyst Rashad Hajiyev took to X to share a new forecast for the precious yellow metal. Per Hajiyev, gold had dipped 0.4% after the Fed rate cut announcement.
At the same time, silver also responded negatively to the development and plummeted 2.2% after the Fed announcement. However, the analyst dubbed the recent downfall the “last shakeout” before the assets resumed their ascent again.
“Silver is down 2.2% while gold lost 0.4%. The precious metals market is going through probably a final “proper” shakeout before it starts a final leg up until year-end 2024. Why would silver fall better than 2% on a 0.5%?
He later outlined that Fed Day is usually volatile for the assets, especially gold, and that the assets may eventually stabilize in the long run to cover up the losses.
“Fed day is usually a volatile day, and the initial run in metals was a trap to lure in intraday buyers. Nice shakeout. I would expect that metals will stabilize at present price levels and start a slow grind higher from now on.”
Also Read: Canada Halts Digital Dollar: What It Means for Crypto Investors
Analyst Forecasts Bullish Price Pace For AUX
Hajiyev later shared bullish forecasts for gold. He elaborated on how AUX is now heading towards claiming a new ATH of $2,700.
“Gold recovered entirely yesterday’s losses post FOMC. Next gold needs to run higher towards the $2,700 level.”
Hajiyev further pointed out new market developments, adding that silver has also covered its recent losses and is now trading at the $31 price.
According to trading economics, the portal forecasts a $2,532 price pedestal for gold to conquer by the end of this quarter. At the same time, the portal shared how the metal may trade at a higher price level of $2,623 by the end of 2024.
“Gold increased 532.62 USD/t oz., or 25.82%, since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Gold is expected to trade at 2532.66 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2623.27 in 12 months.”
Also Read: Commerzbank’s Crypto Move: A Game-Changer for Bitcoin and Ethereum?