Close Menu
  • Home
  • Crypto News
  • Tech News
  • Gadgets
  • NFT’s
  • Luxury Goods
  • Gold News
  • Cat Videos
What's Hot

Best New iPad Apps of 2025

May 9, 2025

This New Cryptocurrency Could Outperform XRP and MATIC — Best Crypto to Buy Before June?

May 9, 2025

What we learned from the FTC v. Meta antitrust trial (so far)

May 9, 2025
Facebook X (Twitter) Instagram
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • DMCA
Facebook X (Twitter) Instagram
KittyBNK
  • Home
  • Crypto News
  • Tech News
  • Gadgets
  • NFT’s
  • Luxury Goods
  • Gold News
  • Cat Videos
KittyBNK
Home » This is just the start for gold, even if ATHs remain out of reach
Gold News

This is just the start for gold, even if ATHs remain out of reach

November 3, 2023No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
This is just the start for gold, even if ATHs remain out of reach
Share
Facebook Twitter LinkedIn Pinterest Email

Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day’s top stories directly to your inbox. Sign up here!

(Kitco News) – Chaos in the Middle East appears to be contained within Gaza as Israel continues to wage its war against Hamas; however, the static geopolitical environment is taking its toll on gold as prices appear stuck at $2,000 an ounce.

Although October’s monthly close was an all-time high for the precious metal. Some investors are probably feeling slightly frustrated that gold doesn’t have the juice to achieve this goal in absolute terms. With gold prices ending the week at $2,002 an ounce, the market is about 4% away from its 2020 all-time highs.

$2,000 represents a major long-term resistance point for gold, so prices will have to consolidate or fall back a little for a running start to push to $2,100 an ounce.

With this in mind, it’s not surprising that gold is losing some momentum. We have noted a few times in this newsletter that specific geopolitical events do not provide sustainable momentum for gold. The problem with safe-haven demand is that the market needs events to escalate constantly. Once tensions calm or at least don’t ratchet up, the need for a safe-haven starts to wane.

At the same time, unfolding world events is creating a very volatile market. This week, the World Bank said it sees gold prices rising 6% in 2024, driven by geopolitical uncertainty.

“The conflict in the Middle East is set to lead to heightened global uncertainty, with substantial implications to gold prices if the conflict escalates. Although the initial impact has so far been moderate, its escalation would exacerbate such uncertainty, which would lead to reduced risk appetite as well as lower consumer and investor confidence,” analysts at the World Bank said in the report.

But it’s not just what is happening in the Middle East that is impacting gold; analysts have said that they are expecting the precious metal to remain well supported at current levels as overall geopolitical uncertainty remains elevated.

Specific events will gain market attention and then fade into the background, but chaos and volatility are not going away anytime soon. An unwind of the decades-long globalization, the global de-dollarization trend, the green energy transition, and the need to develop domestic supplies of critical materials continues to destabilize the world and fuel geopolitical uncertainty.

In this environment, we should expect to see volatile gold prices in an upward-sloping trend line.

Adding to the geopolitical uncertainty, there are growing fears that the global economy remains on track to fall into a recession despite how resilient U.S. consumption has been.

We can already see signs of slowing growth as the U.S. labor market starts to cool. Friday, the Bureau of Labor Statistics said the U.S. economy created 150,000 jobs last month, missing expectations for gains of around 178,000 jobs. The unemployment rate rose, and wage growth was also weaker than expected.

Weaker-than-expected economic data will ensure that the Federal Reserve is done raising interest rates, even as it continues to maintain a tightening bias.

While geopolitical events will create short-term momentum in gold, an eventual shift in the Federal Reserve’s monetary policy could be a bigger factor for sustainably higher prices.




Although prices rose nearly 9% in the last four weeks from their seven-month lows, a lot of that was due to a shift in speculative positioning. Long-term investors have still avoided the market as holding in gold-backed exchange-traded products remained fairly stable through October.

Analysts have noted that long-term investors are hesitant to get into the gold as the Federal Reserve maintains its tightening bias. Higher interest rates will push both the U.S. dollar and bond yields higher, creating two significant headwinds for gold.

Investors should come back to gold as these headwinds start to fade as markets see the Fed’s next move as a cut.

That’s it for this week. Have a great weekend







Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Credit: Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

4 gold investing moves beginners should make with the price high

July 30, 2024

Fortitude Gold Drills 9.14 Meters Grading 2.33 g/t Gold Within 16.76 Meters Grading 1.58 g/t Gold at Scarlet North

July 30, 2024

First Majestic Announces New High-Grade Gold and Silver Discovery at Santa Elena

July 30, 2024

Those who invested in Serabi Gold (LON:SRB) a year ago are up 163%

July 30, 2024
Add A Comment
Leave A Reply Cancel Reply

What's New Here!

Apple CarPlay vs Android Auto: The Ultimate Showdown

August 12, 2024

Activewear brands 2024: Best workout clothes for women

June 19, 2024

Trump-Backed WLF Launches Despite Website Crash – What’s Next?

October 16, 2024

The Sandbox Celebrates Biggie Smalls with Warner Music

December 5, 2023

Uganda’s Budget Proposal: Luxury Cars for Ex-Leaders

January 10, 2024
Facebook X (Twitter) Instagram Telegram
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • DMCA
© 2025 kittybnk.com - All Rights Reserved!

Type above and press Enter to search. Press Esc to cancel.