The price of gold rose on Monday, and gained 0.5 % at the time of writing this report to $ 2950 an ounce in the instant market. The commodity has been in a strong upward trend since mid -December, and increased by 12.4 % on an annual basis. Investors are still flowing on the assets of safe haven, as they seek to expand themselves against the prevailing ecosystems of the ecosystems that the United States incite. Many institutional analysts such as City and Goldman Sachs estimate that the price of gold will cross more than $ 3000 an ounce this year.
A week of multiple fluctuations for the price of gold
The high tariff environment witnessed that the federal reserve adopts a position on the interesting interest rate, which will limit the high price of gold. However, the effect will be faced through the growing gold purchases by central banks around the world, keen to get rid of market risk factors. Retail sales data in the main United States that was released last Friday indicated an existential weakness in the American economy, which will provide the wind wind to the price of gold.
The largest economy in the world will issue the numbers of GDP in the fourth quarter of 2024 on Thursday, and this will provide a broader view of the American economy path, adding a new driving force to the Xauusd trading pair. Also, the personal consumption expenditures in January (PCE) will be out of Friday, revealing the impact of Donald Trump’s economic policies on the economy in the first month in his position.
Gold price prediction
The price of gold is likely to last with the upper direction if the procedure remains above the axis mark at $ 2,934. The upper momentum in the first obstacle is likely to fulfill $ 2950. However, the control extended by buyers can break this level and a higher head to the second resistance at $ 2960.
Instead, if the price decreases to less than $ 2,934, it will indicate that the sellers control. This first support is likely to witness $ 2,926. However, a stronger landing momentum will reduce this level, lead to nullifying the bullish narration, and is likely to test the second support at $ 2920.
