The gold market is waiting for the monetary policy of the US Federal Reserve (Fed) after the upcoming January 2024 inflation data.
Ole Hansen, commodity strategist at Saxo Bank, said that if the upcoming US CPI index is weaker, this could lead to US Treasury bond yields and the USD falling, giving gold prices a chance to increase. .
Meanwhile, Tastelive expert Christopher Vecchio said the stock market affects gold. Non-yielding assets such as gold may “stay in place” as investors focus on stocks.
Gold price forecast
According to experts, precious metals have an unclear direction, gold prices fluctuate slightly around the 50-day average. Gold price can break out if it overcomes the resistance level of 2,065 USD/ounce.
Despite falling in recent sessions, the upward momentum is still maintained. The gold market could trigger a rally to $2,085/ounce and possibly even $2,150/ounce.
Naeem Aslam, Chief Investment Officer of Zaye Capital Markets, also said that weaker inflation data could push gold prices back to $2,050/ounce.
According to James Stanley, Forex senior market strategist, gold prices need to fall below 2,000 USD/ounce to attract new investors, thereby gaining momentum to increase again. If that scenario happens, gold prices could return to their highest level in history.
Phillip Streible, chief market strategist at Blue Line Futures, said the market is preparing for a breakout.
