Gold will increase in price
Updated
Gold prices soared to $2,250 per ounce today, marking a $12 increase from the morning's opening. The driving force behind this upward momentum lies in the growing belief among investors that the Federal Reserve will embark on monetary policy easing. Market watchers anticipate a potential interest rate cut by the Fed in either May or June.
Apart from rate expectations, gold bullion is also buoyed by robust demand. Private investors in China are flocking to gold amidst sluggish real estate activity and a persistently weak overall economy. China's stock market and currency are facing challenges, further bolstering gold's appeal.
The record-breaking surge in gold prices signals investor concerns regarding the Fed's ability to contain inflation as it begins to taper interest rates. Investors are advised to await a pullback before entering the market. It's suggested that gold may retreat towards $2,150, attracting fresh investor interest.
The upward trajectory of global gold prices continues as central banks worldwide sell off USD to acquire gold. Economic experts forecast that if the US job market performs better than expected, coupled with prolonged inflation, the Fed may delay the onset of monetary easing. This could adversely impact precious metals.
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let's waitNote
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Gold price will decrease slightly and then increase again
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