Gold prices are predicted to continue their upward trend, with experts forecasting the precious metal could reach $3,000 per ounce in the coming months. This rise is attributed to several factors, including expectations of interest rate cuts by the US Federal Reserve, a weakening US dollar, and ongoing geopolitical tensions in the Middle East.
Analysts believe that these economic and geopolitical elements, combined with increased demand from central banks, will push gold prices higher. Rashad Hajiyev, founder of RM Capital Consulting, noted in a Khaleej Times report that gold has already seen a 23% increase after breaking out earlier this year and compared the current rally to a similar breakout in 2019 when gold surged 50% over 14 months.
On the trading front, gold closed at $2,503.34 per ounce over the weekend, with prices peaking above $2,525 earlier in the week. In Dubai, 24K gold was trading at Dh303.25 per gram, while other carat levels also saw significant prices.
Market analysts, such as Alex Kuptsikevich from FxPro, pointed out that gold is currently testing resistance levels, suggesting strong buying pressure that could lead to a breakout to new highs. Meanwhile, Vijay Valecha of Century Financial forecasts that gold could potentially hit a range of $2,700 to $3,000 per ounce in the coming months.
Geopolitical uncertainties and a strong demand from China are also expected to keep gold prices buoyant, despite recent economic data from the US indicating a stable economy that has slightly restrained gold’s growth potential.