The price of gold receives a new boost from US inflation data
High price of gold
The price of gold increased to record $2,695.96 per ounce on Wednesday after major American banks announced results that exceeded expectations. Goldman Sachs’ profits doubled in the fourth quarter, while JP Morgan announced that large assets and wealth management grew in the same period.
US inflation indicators
The US Bureau of Labor Statistics reported that US inflation as measured by the change in the Consumer Price Index rose 2.9% year over year in December from 2.7% in November, which was in line with expectations.
Compared to the previous month, the CPI increased by 0.4%, after adding 0.3% in the previous month.
The annual core CPI, which excludes volatile food and energy prices, rose 3.2%, less than the expected 3.3%.
The news sent stocks higher and bond yields lower as investors raised their bets on an upcoming interest rate cut by the Federal Reserve.
US retail sales
Macroeconomic data and metrics will not have much to offer in the coming days except for the US retail sales index scheduled for release on Thursday.
Sales are expected to grow by 0.6% in December after increasing by 0.7% in November.
Why is gold considered a good safe haven so far despite its high prices?
Gold short term forecast
Analysts said that the precious metal is trading at the $2,690 level while maintaining the bullish tone as it continues to develop above all its moving averages although the 20-day and 100-day SMA are converging around the $2,635 level.
At the same time, the technical indicators are trending upward within positive levels, which indicates that investors are still in the bullish trend and the desire to trade in the gold markets and the desire to buy the precious metal.
According to the upward resistance levels for gold, it is heading towards the direction of $2,700 per ounce and exceeds it according to three price levels, from the level of $2,697 to a big jump of 2,725 to the level of the largest rise in an average period of $2,738 per ounce.
Gold rises in a year
The year 2024 was an amazing year for gold, as it rose by about 28% and touched an all-time high of $2,790, making 2024 the strongest annual performance for the metal since 2010, when it rose by 26% in one year.
Read also:
The precious metal remains bullish on the charts despite the discrepancy in investor confidence between it and the stock and currency markets.
The year 2025 may also be promising for gold prices as Trump’s behavior may shift money from stocks to the precious metal again, according to Watcher.
Potential gold rush
The investment bank Goldman Sachs previously published a report predicting that the price of gold may reach $3,000 in 2025, representing an increase and a return on investment of about 12.7% from its current price.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
