Gold Price Movement Forecast
Gold at the Fundamental Level
Gold prices fell on Thursday and are trading near $4,600 an ounce, but remain close to historic highs as markets continue to assess the likelihood of US interest rate cuts amid global uncertainty.
However, the softening of US rhetoric on the Federal Reserve chairmanship and Iran has led to a decline in demand for gold as a safe haven today, as President Trump indicated that any action against Iran could be postponed, easing fears of imminent US military intervention. US gold futures for February delivery fell 0.5% to $4613.0.
On the other hand, producer price data for November, both headline and core, came in weaker than expected, reinforcing previous signals from the December consumer inflation report.
These figures supported expectations that the Federal Reserve has the flexibility to implement several interest rate cuts this year.
However, some policymakers remain cautious, warning that fully curbing inflationary pressures may be more difficult.
Gold on the technical side
Gold prices fell after hitting a new record high yesterday at $4642 per ounce, close to the upper limit of the four-hour rising price channel.
The precious metal is expected to make some downward corrections towards one of the supports shown in the chart, and with the first rebound from either of them, we are considering buying again.
Our targets are near $4640 again and then $4675.
