Despite recent declines, gold’s long-term outlook remains bullish. Several factors support a potential price increase:
– Inflationary pressures: Gold is a proven hedge against inflation.
– Geopolitical uncertainty: Gold is a safe-haven asset during economic and political turmoil.
– Central bank demand: Increasing gold reserves by central banks supports demand.
– Potential for lower interest rates: Lower rates make gold more attractive.
However, potential headwinds include:
– Strong US dollar: Makes gold more expensive for foreign buyers.
– Rising real interest rates: Increases opportunity cost of holding gold.
Key resistance levels will be closely watched for potential breakouts. A bullish reversal could be on the horizon.
Target: $2,670
Stop Loss: $2,600
Wishing you a joyous holiday season and a prosperous New Year!
Best Wishes Tom