The price of gold is showing a positive upward trend, forcing investors to choose sides. As confidence in the US dollar declines, gold and silver have recently emerged as strong support systems and strong stores of value.
With the recent bullish surge in gold, it is now coming out of its consolidation phase and entering a positive uptrend. The price has already surpassed the $2,100 mark, leading analysts to forecast further price projections for the yellow metal.
Also read: Currency War: Falling Dollar Strengthens Outlook for Gold and Silver
Is gold endangering the USD?
The US dollar has recently been a subject of despair among analysts and financial experts. Falling currency value and declining purchasing power force investors to look for other solid options.
Official data on the US economy shows steady signs of erosion, with US debt rising to $34 trillion. The markers collectively had an impact on the prestige of the dollar, prompting banks to to relocate funds with solid returns and potential.
According to a recent analysis by Game of Trades, a group of experts on
These figures reflect the economic crisis and inflationary pressures that the regions are currently facing. The analyst highlighted the fact that it is only a matter of time before the FED reveals new interest rate measures, which will have an overall impact on the economic stature of the United States.
Also Read: The Fed’s Impact on Gold Prices: Here’s What You Need to Know!
Anticipation of possible interest rate cuts from the Federal Reserve has already started to bear fruit. Gold prices have already started to explode, signaling a pivot by investors toward gold and silver as strong stores of value.
Will gold surpass $2,500?
Game of Trades has released another interesting preview on X, claiming that the price of gold will soon reach $2,500. The analyst noted how the gold candlestick chart confirms a “reverse head and shoulders breakout.”
In a trading analogy, a head and shoulders breakout signals a bullish to bearish trend reversal. On the contrary, an inverted head and shoulders pattern results in a bullish reversal pattern after a downtrend. If momentum continues to grow, gold prices could explode, causing the dollar to fall.
This development was further strengthened after a recent report from BMO Capital Markets predicted that gold and silver prices would peak amid a weakening currency crisis.
reference: watcher.guru