Gold prices have been on a significant upward trend this year, with experts predicting that the rally will continue and the price of the yellow metal may reach $3,000 per ounce in the near future. The main factors driving this surge in gold prices include the expectations of interest rate cuts by the US Federal Reserve, weakness in the US dollar, and geopolitical tensions in the Middle East. Analysts believe that these factors, along with a potential increase in demand from central banks, will continue to push gold prices higher.
According to Rashad Hajiyev, founder of RM Capital Consulting, gold is currently in an advancing cycle, with a rally of 23% since late February 2024. He predicts that the minimum target for gold is $3,000 per ounce based on the current trend. The price of gold closed at $2,503.34 per ounce over the weekend, reaching above $2,525 earlier in the week. In Dubai, 24K, 22K, 21K, and 18K gold were trading at Dh303.25, Dh280.75, Dh271.75, and Dh233 per gram, respectively.
Alex Kuptsikevich, senior market analyst at FxPro, pointed out that gold faced resistance at $2,525 an ounce, which it has been struggling against for the past two weeks. He highlighted the strong buying pressure in the market, indicating a potential breakout to historical highs in the near future. Vijay Valecha, chief investment officer at Century Financial, also predicted that gold could target a range of $2,700-$3,000 per ounce, translating to Dh330-Dh365 per gram in the UAE.
Mazen Salhab, chief market strategist for Mena at BDSwiss, mentioned that recent data showed a slight decrease in US weekly jobless claims, which could benefit gold prices. However, the US GDP growth for the second quarter was revised up to 3%, supporting the US dollar and treasury yields, slightly limiting gold’s potential for further gains. Despite this, ongoing geopolitical risks and strong demand from China are expected to continue supporting gold prices in the coming months.
Looking ahead, experts believe that falling interest rates, geopolitical tensions, and increasing demand from central banks will play a crucial role in driving gold prices higher. Investors are advised to stay updated with the latest news and developments in the market to make informed decisions. With the potential for gold prices to reach $3,000 per ounce, there is significant room for growth in the precious metal market. As the rally in gold continues, it will be essential for investors to monitor market trends and fluctuations to capitalize on potential opportunities.
