Gold has been making headlines recently by keeping its momentum intact amid the sharp market collapse. The yellow metal has seen some declines but is slowly regaining momentum. According to Kitco, gold prices are subdued, currently sitting at $2,193, down 0.90% at press time.
However, the trend is likely to gain momentum soon as Fed rate expectations have recently picked up, boosting gold’s outlook.
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Gold is about to gain momentum soon
Palpable anticipation surrounding the Federal Reserve’s decision to cut interest rates in June is supporting the price of gold. Gold is expected to cross a new bullish price threshold, with inflow around the metal increasing at a gradual pace.
According to Cathy, a renowned market analyst on X, the current trajectory of gold prices is destined for a meteoric bullish trend. The analyst was quick to identify the reasons, adding that the absence of major events in the United States is pushing investors to explore gold as a hedge against multiple economic factors.
“In the absence of major economic events in the United States, investors have been buying gold in response to growing speculation that the Federal Reserve (Fed) may cut interest rates in June. Currently, XAU/USD is trading at $2,195, and today’s economic data expects gold to continue to rise.
Cathy highlighted the growing anticipation of federal rate cuts affecting gold prices. Currently, gold is trading at $2,195, after experiencing fluctuations below $2,000. She explained how expectations of Fed rate cuts have already started to have a positive impact on the price of gold.
It is worth noting that it is not just investors who are driving gold price dynamics. Central banks also add gold to their reserves, thereby diversifying their foreign currency holdings.
"Central banks continue to declare #gold purchases, motivated by their desire to diversify their foreign currency reserves. This offsets weak investment demand, which is more focused on expectations of lower U.S. rates."UBS Staunovo analyst https://t.co/AXs7QAltxk via @Reuters pic.twitter.com/xJQ5j8CuT2
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Dan Popescu 
(@PopescuCo) Is the bullish phase of gold coming in April?
While sharing her thoughts on current gold prices, Cathy turned to X to outline another promising prediction. Cathy expects the price of gold to reach another milestone by April 2024.
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The analyst predicted that gold prices would recover and see a rise soon.
“In the long term, gold prices are still on an upward trend, but their purchasing power is gradually decreasing. The sideways range from $2,150 to $2,180 gradually breaks and a new trend appears in early April 2024.”
reference: watcher.guru