Phillip Nova's Priyanka Sachdeva stated that gold's long-term prospects remain optimistic, but due to its elevated price levels, short-term risks are high. The analyst wrote in a research report that gold has achieved another milestone, with the spot price surging past $4,600 per ounce, driven by a "powerful confluence of macroeconomic and geopolitical forces." She indicated that a key positive factor is the market's heightened expectation for more substantial interest rate cuts by the Federal Reserve, following the release of softer U.S. labor market data. She added that the long-term bullish case for gold continues to be robustly supported by anticipations of Fed policy easing, sustained inflows into ETFs, and remarkably resilient physical demand. "However, given that gold prices have already reached record highs... investors should maintain a constructive attitude but also exercise caution and prepare for increased volatility," Sachdeva said.
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