Gold prices have cooled in the last two weeks but can move higher this week.
Gold – Weekly Chart
The price of gold now trades at $1,968, with a chance to push for the $2,000 level again.
Gold prices have been in demand with the recent banking turmoil in the US. Still, the country has a new problem with the potential arrest of former President Donald Trump.
Markets are highlighting the potential for political turmoil that could drag on for one and a half years into the Presidential election in 2024. Gold has also been supported in 2023 with continued central bank buying. Demand for gold has increased by over 20% this year as investors turned to safe havens and central banks increased their stocks. Gold may get a further boost this week with uncertainty about the US political race.
Gold Prices Expected To Continue Climb Towards $2000
The latest data has also supported gold recently. US Gross Domestic Product growth in the United States revised lower for the year’s final three months to 2.6% from 2.7%. That will likely add to the chorus of market commentators expecting a slowdown, or a cut, in US interest rates.
Investor Jeffrey Gundlach of DoubleLine Capital in the USA has said the Federal Reserve will likely have to capitulate on interest rates.
Gundlach said the US central bank must now choose between fighting inflation and slowing growth. “The economic headwinds are building, we’ve been talking about this for a while, and I think the recession is here in a few months,” he told CNBC.
“Markets go through these periods I call a rolling bear market or rolling recession,” Morgan Stanley Chief US economist Mike Wilson told Bloomberg TV. This week, he told investors that the stock market has faced its highest downside risk in the past year.
Traders can capitalise on this negative sentiment in the market with a move higher in gold prices, and $2,000 is the target this week.
