The G20 summit took place in Bali, Indonesia, on November 2022…
Banks forecast gold will rise above $2 000
Information is not investment advice
The yellow metal tries to reverse from yesterday’s huge losses, caused by Trump’s tweets. The US president canceled talks between Democrats and Republicans over the fiscal stimulus package, whereas the deal was one step away from reaching. That was really shocking, and as a result, the safe-haven US dollar skyrocketed, which in turn pushed gold to the downside.
After that, Trump was hugely criticized for this by many US politicians, worsening his already weak position. According to US polls, Joe Biden has a lead of 8 percentage points over Donald Trump: 51% vs 43%. That’s why the current president reiterated that Congress will fund small businesses and airlines, and also unveil $1 200 stimulus checks to Americans. Actually, it worked, and the market sentiment has improved, weighing on the greenback, which boosted gold.
What is the forecast?
Saxo Bank has a positive outlook for gold because of the upcoming presidential elections on November 3. In the case of Biden’s victory, investors will await a policy shift, which will create uncertainty on the market, and as a result, capital may flow to gold.
Citibank announced the bullish short- and medium-term forecasts for gold. The bank set the 3-month price target at $2 200 and the 6-to-12-month target at $2 400.
According to Heraeus Precious Metals: “however, the pandemic is far from over, and if the economic outlook worsens, central banks could increase their monetary interventions yet again”.
Forecasts may seem one-sided for you, but there is hardly any bearish forecast for gold in the medium term. Although gold is trading sideways currently, its long-term trend is bullish. As you may know, gold tends to stick to the long-term trend.
After yesterday’s huge slump, gold has turned to the upside. The move above the key resistance of $1 900 will drive the yellow metal to Monday’s high of $1 920. On the flip side, if it drops below yesterday’s low of $1 875, the way towards September’s dips at $1 850 will be open.
Follow Fed’s meeting minutes this evening as they will add fresh volatility to XAU/USD.
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
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Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?