Gold has lately been making headlines by keeping its pace intact amid the stark market meltdown. The yellow metal has documented a few downswings but is slowly recovering its momentum. Per Kitco, the gold prices are mellow, currently sitting at $2,193, down 0.90% at the time of publication.
However, the trend is expected to gain prominence soon as anticipation concerning the fed rates has lately been amplifying, boosting Gold’s prospects.
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Gold Is Poised to Gain Momentum Soon
The palpable anticipation surrounding the Federal Reserve’s decision to cut interest rates in June is bolstering the price of gold. Gold is expected to break into a new bullish price threshold, with the influx around the metal increasing at a gradual pace.
According to Cathy, a notable market analyst on X, the current price trajectory of gold is bound for a stellar uptrend. The analyst was quick to pinpoint the reasons, adding that the absence of major events in the US is propelling investors to explore gold as a hedge against multiple economic drivers.
“In the absence of major economic events in the United States (US), investors have been buying gold in response to growing speculation that the Federal Reserve (Fed) may cut interest rates in June. As of now, XAU/USD is trading at $2,195, and today’s economic data expects gold to continue rising.”
Cathy emphasized the growing anticipation of Federal Rate cuts affecting gold prices. Currently, gold trades at $2,195, having experienced fluctuations dipping below $2,000. She shared how the Fed rate cut expectations have already started to impact the price of gold positively.
It is worth noting that it isn’t just the investors fueling the gold price momentum. The Central banks are also adding gold to their reserves, diversifying their currency holdings.
Gold Bull Phase Arriving in April?
While sharing insights on the current gold prices, Cathy took to X to outline another promising prediction. Dubbed a personal review, Cathy expects the price of gold to hit a new milestone by April 2024.
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The analyst predicted that gold prices would recover and experience an upward ascent soon.
“In the long term, gold prices are still on an upward trend, but their purchasing power is gradually declining. The $2150-$2180 sideways range gradually breaks through, and a new trend appears in early April 2024.”