Two Reasons Why Gold Price at $1800~$2000 in the Short Term!
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At the same time, against the background of the global de-dollarization, gold remains an important safe-haven asset.
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However, some analysts believe that safe-haven demand may not be able to provide sustained long-term support for gold, while geopolitical factors will continue to support gold prices until 2024, and the escalation of the situation in the Middle East is just the latest development of this factor.
Edward Moya, senior market analyst at OANDA, pointed out that while conflicts are breaking out again in the Middle East, the United States' growing liabilities and deficits are affecting the bond market, and foreign investors seem to be less willing to buy U.S. debt.
Moya said on Monday that the conflict in Israel could support gold prices. The sell-off in the bond market has put gold in jeopardy, but geopolitical risks have given it a chance to survive. It now appears that gold prices are well supported at $1,920, and unless high inflation data/expectations are coupled with large banks being optimistic about the consumption outlook, gold's downward trend will not hold.
Ipek OzkardeskayaOzkardeskaya, senior analyst at Swissquote Bank, said that if U.S. Treasury yields remain high, gold prices will not see a sustained rise. According to her, the price of gold is expected to rise to a maximum of $2,000 per ounce. Therefore, it is not geopolitics but U.S. bond yields that determine the price of gold in the medium and long term.
Analysts at CMP Group also believe that this rise in gold prices is unsustainable. Analysts pointed out on Monday that the Middle East issue cannot be resolved in the short term, but the situation may ease. If the healthy economic situation in the United States and the unexpected rise in U.S. inflation data later this week are combined, the price of gold may drop to $1,820.
Therefore, although gold has the potential to move higher, it is still necessary to pay attention to the impact of U.S. bond yields.
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- 風中的承诺·2023-10-12Great ariticle, would you like to share it?LikeReport