Gold prices, which rose almost 21 per cent this year, are expected to continue rising as more and more analysts predict that the price of gold will reach $3000 per ounce in the near future.
This year the valuable metal further appreciated and can be attributed to the expectations of the first time US Federal Value cut in a long time, a falling US dollar, and political instabilities in the Middle Eastern region.
As to the section of future trends, analysts estimated declining interest rate, geopolitical tension and higher demand from central banks as future drivers of price of gold.
Gold is at present in the advancing phase of its cycle, and has been up by 23 percent since getting out of the range in late February 2024. Gold was long overdue for a similar breakout and it rose by 50 percent within 14 months of 2019. RM Capital Consulting’s founder Rashad Hajiyev said that the current rally still has more room, and the minimum that he expects is $3,000 per ounce was.
The price of the yellow metal at close of the Sunday was at $2,503. 34 per ounce. After that it started going up in a ascending manner and crossed $25. 25 one the beginning of the week.
In Dubai the current price of 24k gold per one gram was Dh303, 22k gold per one gram was Dh268, 21k gold per one gram was Dh205 and 18k gold gram was Dh170. 25, Dh280. 75, Dh271. 75, and Dh233, respectively.
Alex Kuptsikevich, a senior expert at FxPro, said that while gold was trading on the spot market for $2,525 per ounce last Friday, the metal had been trying to break through this level for two weeks. A series of cheaper prices and successive higher pullbacks to the resistance level bring tight buying pressure.
Kuptsikevich noted that under these conditions we can expect a return to the heights in the near future, but it will be necessary to see what happens with the price after.
He said that at the bottom on the gold chart a triangle has been formed with the horizontal resistance line and rising support line implying that more buying pressure is likely to emerge at higher levels in the next one and two weeks respectively. The same result can be seen when observing the weekly chart starting from April where the trend of smaller corrections has been on the rise only. The current consolidation in the financial instrument’s price is oscillating in the proximity of the upper boundary of the uptrend.
He said that there is an evidence of up-fanning in the daily timeframe of his observation. However, we noted a similar trend in between October 2023 and February 2024, which gave a strong upward movement as compared to a mild one.
In a near future Vijay Valecha, the chief investment officer at Century Financial, believes that gold price may rise up to $2,700-$3000 per ounce which equals to Dh330-Dh365 per gram in the UAE.
As per the latest figures released, US weekly jobless claims were marginally down which could be positive for gold said Mazen Salhab who holding the position of chief market strategist of Mena at BDSwiss.
However, for the second quarter of the year, the US GDP was revised upward to 3 per cent which show that the economy remains stable at the back ground. It has supported the demand of the US dollar and influenced treasury yields to some extent that hampers the probability of a higher gold price.
Also, in his forecast on the future price of gold, Salhab was of the view that sustained geopolitical risks and robust purchasing from China will still support the price.
