Gold prices plunged yesterday to a low of $2291. However, there are several reasons to consider trading gold in 2024.
Inflation may still increase, it seems that the Fed is still in doubt about cutting interest rates because inflation is still not in line with expectations.
Another reason is the high global geopolitical conditions that concern the world. War in the Middle East and Russia vs Ukraine may encourage gold as a safe-haven asset.
Citigroup Inc. has raised its average price prediction in 2024 to US$2,350 and in 2025 it is estimated at an average of US$2,875.
Goldman Sachs Group Inc. also raised its forecast to $2,700 in 2024 and UBS Group predicted $2,500 by the end of the year.
At market opening today, gold edged up 0.01% after falling sharply yesterday and forming the Morubozu candlestick. The continued decline brought gold to a low of $2291. But the price bounced back at $2322.
The price is now moving near the middle band line and a long wick appears on the daily timeframe reflecting a reversal signal. The Bollinger band line appears to be narrowing on the daily timeframe, reflecting possible decreasing volatility. On the other hand, MA 50 is still forming an upward channel below the lower band line, an indication of an uptrend market. The RSI indicator is at level 59, meaning the price is still above the uptrend level.
View attachment 7011
Inflation may still increase, it seems that the Fed is still in doubt about cutting interest rates because inflation is still not in line with expectations.
Another reason is the high global geopolitical conditions that concern the world. War in the Middle East and Russia vs Ukraine may encourage gold as a safe-haven asset.
Citigroup Inc. has raised its average price prediction in 2024 to US$2,350 and in 2025 it is estimated at an average of US$2,875.
Goldman Sachs Group Inc. also raised its forecast to $2,700 in 2024 and UBS Group predicted $2,500 by the end of the year.
At market opening today, gold edged up 0.01% after falling sharply yesterday and forming the Morubozu candlestick. The continued decline brought gold to a low of $2291. But the price bounced back at $2322.
The price is now moving near the middle band line and a long wick appears on the daily timeframe reflecting a reversal signal. The Bollinger band line appears to be narrowing on the daily timeframe, reflecting possible decreasing volatility. On the other hand, MA 50 is still forming an upward channel below the lower band line, an indication of an uptrend market. The RSI indicator is at level 59, meaning the price is still above the uptrend level.
View attachment 7011
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