Analyzing the price of gold and the expected scenario, it is important to take into account the factors affecting the gold market and their impact on the price performance. The Stochastic indicator is one of the technical tools used to analyze financial markets, and it works to estimate the speed of change in the price of an asset (in this case, gold) and determine whether prices are in the overbought or oversold zone.
Regarding the expected scenario, if the gold price maintains its stability above the $2431.44 level, and is affected by the negativity of the Stochastic indicator, some sideways tilt may appear. This indicates that the price of gold may move in a narrow range or fluctuate between specific levels for a short period of time.
However, we must note that technical analysis and indicators such as Stochastic cannot predict events with absolute accuracy, but rather rely on the analysis of past patterns and the future forecasts derived from them. Gold prices may be affected by many factors such as supply and demand, inflation, economic stability, political and geopolitical events, and global market developments.
It is important to be careful when making future conclusions and predictions based on stochastic analysis alone. It is recommended to review reliable sources and monitor news and current events to get a broader and more accurate view of gold price trends. It must be remembered that investing in gold involves risks, and investors should take into account the diversification of their portfolio and their tolerance for risk before making any investment decision.
It is expected that there will be a positive stimulus that will contribute to pushing the price of gold to resume the main upward trend, which mainly targets the $2,500.00 level.
Having a solid investment strategy and tolerance for risks
The importance of having a solid investment strategy and risk tolerance when making investment decisions. Investing money in assets such as gold involves financial risks, and it is important to have a clear and thoughtful plan to manage those risks and achieve the desired return.
Consulting with a professional financial advisor is a wise step before making any investment decisions. An experienced financial advisor can help you understand the ins and outs of the gold industry and market analysis, and can guide you toward the appropriate strategy based on your goals and risk tolerance. When you cooperate with a professional financial advisor, you will be able to benefit from his experience in estimating future trends in the price of gold, analyzing the factors affecting the market, assessing potential risks and providing advice on entry and exit strategies from the market.
Expected trading range: between support $2420.00 and resistance $2460.00.
Price forecast for today: High
The largest buyer of gold: China and India usually compete for the title of the largest buyer in the world. But that changed last year as Chinese consumption of jewelry, bullion and coins swelled to record levels. Demand for gold jewelry in China rose by 10% while demand in India decreased by 6%. Meanwhile, China’s investment in bullion and coins rose by 28%.
The most important expectations about gold prices in 2024
• Citibank Group expects gold prices to rise up to $3,000 per ounce over the next six to eighteen months.
• Goldman Sachs Group expects gold prices to rise to $2,700 per ounce by the end of this year, thanks to the unwavering bull market.
• JP Morgan expects the price of gold to reach US$2,500 per ounce by the end of 2024 and said that the precious metal is its primary choice in commodity markets.
Types of demand for gold metal
Industrial demand
• Electronics: Gold is widely used in electronic components such as printed circuits and motherboards in smartphones, computers, and other electronic devices, thanks to its distinctive properties of its ability to conduct electricity effectively and with high efficiency.
• Renewable energy: Gold is used in renewable technologies such as solar cells and lithium-ion batteries, which are a key element in the transition towards cleaner, sustainable energy.
• Vehicles: Gold is used in car engines to improve their performance and efficiency.
• Household products: Gold is used in home appliances such as refrigerators and air conditioners to improve their functionality and efficiency.
Investment demand
• Jewelry: Gold is one of the precious metals used in the manufacture of jewelry and artistic pieces due to its beauty and distinctive properties.
• Coins: Gold is used to make coins due to its unique value and relative stability.
• Safe Haven: Gold bullion is a safe haven for investors in periods of economic and geopolitical uncertainty due to its stable value and ability to retain its value.
• Exchange-traded funds (ETFs): Gold is used in exchange-traded funds that allow investors to buy and sell gold without having to physically own it.
Global central banks
• Global central banks maintain gold reserves as part of foreign exchange reserves to support the value of their currencies and maintain financial stability.
• Gold reserves provide a form of insurance against currency fluctuations and geopolitical risks.
• Central banks can buy or sell gold depending on their monetary objectives and economic conditions.
The most important factors that affect the levels of demand for gold
1. Global economic growth: Economic growth leads to increased demand for gold in various industrial and consumer fields.
2. Global interest rates: Low interest rates increase the attractiveness of gold as an alternative investment to low-yielding government bonds.
The most important price stations for gold metal
August 2008: Gold price reached a low of $251.90 per ounce.
• April 2024: Gold price hits an all-time high of $2,431.55 per ounce.
• April 2024: Gold price hits an all-time high closing level of $2,391.82 per ounce.
The best performance of gold prices in history
• 2007: Best annual performance ever, with an increase of approximately 31%.
• First quarter/2016: Best quarterly performance ever, with an increase of more than 16%.
• September 1999: Best monthly performance ever, with an increase of approximately 17%.
The most important frequently asked questions about gold metal
How to invest in gold? Gold can be invested in several different ways, first by purchasing actual gold such as coins or bullion. Secondly, by investing in gold exchange-traded funds (ETFs), especially those traded on Wall Street markets. Thirdly, by purchasing shares of gold mining and minting companies, especially those that are traded in the American markets on Wall Street. Fourth, by trading gold futures contracts, options contracts, and futures contracts…
Will gold prices reach $3,000 per ounce? In light of recent developments in global markets and economic and geopolitical risks, it is not entirely unlikely that gold prices will rise over the coming years to levels of $3,000 per ounce. In order to reach this historical level, we need factors that strongly influence the levels of industrial and investment demand for gold bullion in the long term.
Are gold prices expected to rise in 2024? Yes, it is expected that gold prices will continue to rise this year, as most major institutions and banks have stable expectations about the metal entering a bull market as it approaches the $2,500 per ounce barrier.
