Gold to Cross Above $2400: Should You Go for It?
July 9, 2024 (Investorideas.com Newswire) Last week, gold prices rose by 1.46% following soft US job data. This raises expectations that the Federal Reserve will cut interest rates in September.
However, Saqib Iqbal, a financial analyst at Tradequotex.com, suggests that is not the only reason for bullion's bullishness.
- Gold prices have increased by more than 15% this year.
- The bullish momentum can continue due to geopolitical tensions and anticipated US rate cuts.
- The yellow metal can reach above $2400 by the end of the year.
"Gold has surged more than 15% year-to-date on safe-haven demand amid geopolitical conflicts, optimism about US interest rate cuts, and central bank purchasing. I believe gold is poised to keep its positive momentum going in the second half, averaging $2300 in the next quarter, while ending the year above $2400."
For most of Q2 2024, gold traded above $2300, marking its third consecutive quarterly climb. Even though the US Federal Reserve kept interest rates high, the bullish run continued, and the data suggests bulls won't stop.
According to recent WGC research, central banks plan to continue buying gold, with 29% of respondents indicating they will do so over the next 12 months. However, in recent months, China's gold purchases have slowed significantly. In June, the People's Bank of China refrained from adding gold to its reserves for a second month.
Saqib thinks geopolitics will continue to impact gold prices. In the near to medium term, safe-haven demand is expected to sustain gold prices due to the Middle East and Ukraine conflict.
In addition, the long-awaited US Fed rate cut and the US presidential election in November will contribute to gold's upward momentum until the end of the year.
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