2024-03-31 19:23:00
Investing.com – It witnessed a strong rebound in March, with gold recording its best performance since November 2022. This strong rise was driven by many factors, most notably confirmation and buying momentum for gold as a safe haven.
Gold rose by nearly 8% during March. Gold ended the first quarter on the rise, marking the second consecutive quarter in which gold rose. Meanwhile, with gold closing its trading at the end of last week at $2,233.12, up 3% per week, the question remains whether gold is subjected to a violent correction or whether there is a larger peak waiting.
Central banks don’t stop buying
The Chinese central bank has been active as one of the most purchasing central banks for the yellow metal in the world, and the Chinese buying appetite for the global safe haven has increased with some economic challenges, recession in the real estate sector, and the bankruptcy of some huge real estate companies in China. After China comes the country of Poland, which has become the second largest consumer of gold, and this resort to gold came as the land of the Russian-Ukrainian conflict approached the Polish border, and in third place came the country of Singapore. The country also significantly increased its purchases of gold despite the presence of a lot of economic turmoil in the country, which raised interest rates to 50% once morest the backdrop of a violent rise in inflation levels.
Read also|
Expectations
“The bullish momentum in gold will continue until Diwali (an Indian festival that sees an increase in gold purchases domestically). COMEX gold can rise towards $2,250 and $2,320 until it stabilizes above $2,145,” said Anuj Gupta, Head of Commodities and Currencies, HDFC Securities.
One of the primary factors affecting the outlook for gold is the scenario of global economic turmoil. This is what happened during the epidemic period, with the global economy being damaged, which then led to a rise in gold prices in 2020 and 2021 due to its appeal as a safe haven.
“The Fed’s policy path will significantly impact gold prices in 2024,” said Ravindra Rao, head of commodities research at Kotak Securities. “Currently, the market is expecting a 54% probability of a quarter-percentage point rate cut by June (according to CME) The Fed’s monitoring tool), is likely to extend into July if inflationary pressures persist, particularly from housing inflation in the United States and rising gasoline prices.
However, gold prices look promising over a six-month period amid expectations of a Fed shift in the second half of 2024, escalating geopolitical tensions, global growth concerns, and China’s economic struggles.
“On the price action front, COMEX gold prices appear poised to sustain levels above the $2,150 mark, the previous all-time high. This sustainability should enable bulls to push prices towards $2,250-$2,300 per ounce.
“The stage is set for a multi-year bull run, and we expect gold to reach 2,400-2,500 levels by the end of the year,” said Amit Goel, co-founder and global chief strategist at Pace 360. “Strong global macro fundamentals support the potential of this asset class, indicating To a possible launch soon. “It’s a compelling time to think regarding joining and to stick strong.”
Analysts from Citibank and Berinberg also expressed a bullish outlook on gold, with possible rises in response to global events and the US elections. Gold’s role as a recession hedge and safe haven asset has become increasingly important amid geopolitical tensions and economic uncertainties. Market expectations of Fed rate cuts are adding to the bullish momentum, although volatility is expected due to varying macroeconomic drivers and geopolitical events. Strategists at ING emphasize the critical role of Federal Reserve policies in shaping the future path of gold prices.
1711924480
#important #forecasts #gold #prices #quarter #2024…and #countries #hoard #gold #Investing.com
