- With the resurgence of demand for the dollar, gold prices have begun to lose their shine among investors.
- The precious metal experienced an extraordinary rise in April, reaching its all-time high.
- However, it moved in a consolidation chart formation in May. So, what do analysts say about its potential to reach much higher levels?
Gold prices are set to soar, with experts predicting a rise to $3,000. Amidst geopolitical turmoil and rising demand from Asian markets, the precious metal’s safe-haven status could boost its appeal to investors.
Mike McGlone predicts gold price will reach $3,000!
As followed on CoinOtag, the US non-farm payroll for April came in at 175,000, contrary to the expected 238,000. This has increased bets that the Federal Reserve will loosen its interest rate policy. Consequently, this could potentially lead to a recovery in gold prices as it becomes more affordable for foreign buyers. Additionally, rising demand from Asian markets, continued central bank purchases, and the ongoing geopolitical turmoil in the Middle East could support the precious metal’s safe-haven status. Bloomberg’s senior commodity expert Mike McGlone is confident that the combination of two financial indicators will push gold to the $3,000 price tag. In this context, McGlone says:
Citigroup analysts expect $3,000 within 6 to 18 months!
According to experts, price increases will result from the onset of the Fed’s interest rate reduction cycle or a potential recession, in addition to inflows from managed money players showing signs of capturing demand from central banks and consumers in Asia. Citigroup analysts predict that gold will exceed $3,000 in the next 6 to 18 months. Analysts say that “geopolitical heat” will play a significant role in this. In this regard, analysts share the following assessment:
Gold price technical analysis
Market analyst Ana Zirojevic looks at the short-term technical picture of gold. Meanwhile, the yellow metal is still standing above the 100-day exponential moving average (EMA). Also, the 14-day relative strength index (RSI) is at 58. However, the shorter-term outlook is negative. Moreover, it remains in a declining trend channel since the ATH. If gold exits this channel, it will first surpass the $2,350 – $2,355 area at the end of April. After that, $2,400 will emerge as the next resistance. If it manages to pass this, gold will encounter the next hurdle at the ATH level of $2,431.52.
Conclusion
It is possible for the gold price to reach $3,000 in the future. However, considering the largely declining trend in recent charts and the lack of upcoming catalysts that could significantly move the markets in any direction, this may take some time.
