After the collapse of technology giants .. Gold is close to $ 3,300

An economic report said: Gold maintained its attractiveness, recording strong gains with the support of central banks and the increasing concern about debt and inflation, amid the decline in the dollar, in light of the sharp shift in the American financial markets with the decline in technology giants.
According to the report, the shares declined raised the recession fears and changed investor directions towards, while gold is expected to approach 3300 dollars an ounce.

Seven technology companies

According to the report, until recently, the shares of the seven major technology companies (Apple, Microsoft, Alphabet, Amazon, Meta, Invidia, and Talla) – the main pillar of the Wall Street market, contributed to enhancing market gains in 2024 and attracting billions of dollars from foreign investors looking for an opportunity to benefit from American economic superiority.

He added that the situation witnessed a sharp shift in recent weeks, as the index of the seven companies suffered a decrease in exceeding 20% ​​from its highest levels, while the Nasdak complex index witnessed noticeable declines with the impact of technology shares more, as a result of the state of economic uncertainty and recession that led to the reassessment of market expectations and evaluations and the transformation of investors from growth shares to defensive shares.

American stock market

He pointed out that due to the recent developments in the American stock market and the weakness of the US dollar, these factors are the basis for the movement of commodity prices in the recent period. The capital outside American stocks with high assessments flows into other markets, while a series of weak economic reports, as well as implementing and canceling US tariffs on some major commercial partners, affects Wall Street increasingly.
The report said: “These factors raises concerns about the demand for some commodities, and provide support to others through the impact of customs duties, as they enhance the demand for safe havens such as gold, to counter these potential risks, on top of which are the risks of lowering the leverage, as the recent wave of fluctuations forced investors to reduce their exposure to markets.”

Correction attempts

He added that at the present time, the yellow metal is still attracting a strong demand, and recent correction attempts remained limited and were not sufficient to cause a significant reduction in the centers of investors who depend on the price momentum to maintain or increase their exposure.
According to the report, the demand for gold demand last month showed a clear variation; The managed investment funds – such as hedge funds and automated trading consultants (CTAS) – have reduced their upward bets, while the strong demand for gold -backed indicators continued.
According to the report, hedge funds are usually focused on short -term technical moves, while investors tend to maintain their positions for longer periods, as the recent increase in gold possessions is seen as a possible hedge against inflationary stagnation in the United States.

In addition to geopolitical tensions and the possibilities of the collapse of the global economic system that lasted for decades, investors and traders also interact with the sharp and sudden deterioration in American economic data, which led to an increase in expectations by raising the possibilities of inflationary recession – a scenario that is characterized by slowing economic growth, high unemployment and inflation rates.

Useful interest rates

The forward -looking indicators indicate that these risks can be achieved in the coming months, which prompted expectations to reduce interest rates by 25 basis points this year to more than three times, compared to only one expectation last January.
In light of these data, gold prospects are still positive, especially with the last US dollar weakness, and the lack of extension of the last correction wave to the main support levels, as prices wore before reaching a range of 2,790 – 2,811 dollars an ounce.
According to the report issued by “Saksu Bank”, in addition to the demand related to diversification and safe havens, gold is likely to continue to take advantage of the continuous purchases from central banks and concerns related to the expansion of government debt.
Immediate gold increased by 11% since the beginning of the year, while approximately 34% gains in one year. Despite the possibility of a deeper price correction, the report remained on the updated price goal at $ 3,300 an ounce.