Gold prices declined at the beginning of Monday’s trading, as a result of the rise in the value of the dollar and investors’ anticipation of statements by officials from the US Federal Reserve, and the release of economic data that provides us with information about the future of interest rates in the United States. This information comes to us from Reuters. Gold prices in spot transactions fell by 0.1% and reached the level of $2,409.54 per ounce at 02:50 GMT. Gold futures prices also fell by 0.2%, reaching $2,414.70.
Waiting for positive momentum to accumulate, he decided to continue the rise and the price would reach the next target at $2450.00. It has good support from the moving average 50. Consistency above $2392.00 level is an initial condition to continue the bullish wave. If this level is broken, the price may be affected and test the pivotal support level at $2340.10 before any new attempt to rise. The expected trading range for today is between support at $2395.00 and low at $2435.00.
The rise in the value of the dollar is due to safety requests that increase after the assassination attempt on former US President Donald Trump, and this increases the chances of him winning the next presidential elections that will be held in November. Markets expect 93% of interest rates to be reduced by the US Central Bank next September. Gold is seen as a hedge against geopolitical turmoil, and gains appeal when interest rates are low, as gold does not provide an immediate return Price forecast for today: High
From end of 2022 until now, the price of gold has risen by more than 33%, reaching a new all-time record high of $2,165.50 in March 2024, then rising again to $2,279.29 at the beginning of April 2024.
Factors Affecting Gold Prices: A Comprehensive Analysis
The price of gold is affected by several economic, The most prominent of these factors are:
Economic factors: The price of gold is affected by economic factors, such as the performance of the global economy, inflation, key interest rates, and monetary policies. For example, in periods of economic recession and economic instability, gold is considered a safe haven and its demand increases, which raises its price.
Supply and Demand: The price of gold is also affected by the supply and demand for the metal. For example, if demand for gold increases, whether due to investor or industry demand, its price will rise. On the other hand, if supply increases, the price of gold will fall.
Geopolitics: Win geopolitics to determine the price of gold. Political turmoil and international conflicts may increase the attractiveness of gold as a safe haven for investors. For example, in situations of political tension or war, the price of gold can rise.
Currency and other commodities market: The price of gold is also affected by market fluctuations in currencies and other commodities such as oil. For example, if the value of the dollar increases, does this affect the price of gold? Because it makes it more expensive than other businesses.
Industrial Demand: The price of gold is also affected by industrial demand, as gold is used in industries such as electronics, jewelry, and pharmaceutical industries. When demand for gold rises in these industries, it can positively affect its price. It should be noted that the gold market is an international financial market affected by multiple weather factors, and therefore gold price forecasts may be subject to constant changes. It is important that investors and those interested in the gold market follow up, advance the latest economic research, and make effective and appropriate decisions.
Expected trends in the gold market:
What will happen to the price of gold in 2024 based on technical analysis: Based on technical analysis, the likely scenario for 2024 is for gold prices to move in a steady upward trend, gradually updating the highest price levels. The weekly time frame is best suited for making a more detailed price forecast of the price trends of the XAUUSD pair for the year.
Gold price forecasts in 2024: What do experts expect? The year 2024 witnessed the price of gold breaking all its historical levels, similar to the stock market, as its price has currently exceeded the $2,160.00 per ounce barrier. Demand for the precious metal as a safe haven is increasing due to global geopolitical tensions. Gold prices have also been boosted by active buying by institutional investors and central banks, particularly the PBOC, and this trend is likely to continue in 2024. At the same time, Chinese buyers have increased their gold consumption amid domestic domestic economic problems.
The main factors that will influence gold this year are the following: Monetary policy of the United States, the European Union and other regulatory bodies, as investors’ primary interest is in the US Federal Reserve’s steps to reduce inflation.
Interest rate cuts are expected to begin in the third quarter of 2024, which will increase the risk appetite of large market participants and the flow of funds into riskier assets.
The growing demand for safe assets is also linked to the uncertainty surrounding the upcoming US elections.
The US-China trade war, along with sanctions on Russia, have already disrupted supply chains and increased prices for many commodities, including gas, oil and commodities. Further escalation could lead to the continuation of this trend, which will positively affect the price of the yellow metal. Based on these factors.
