Gold Nears Historical Levels: What Comes Next?

Sarah Alyasiri

July 16, 2024

Gold prices increased at the beginning of this week, approaching near its historical levels at $2,450 per ounce. This rise was due to investor optimism that the US Federal Reserve might announce an interest rate cut in September, prompted by the slowdown of inflation in the United States to 3% as it is expected to encourage the Fed to change its monetary policy.

Technically, gold declined by more than 6% after reaching a new record level near $2,450 in May, consolidating at the levels near $2,290. Analysts expect that If gold exceeds its historical level and achieves stability above those levels for the first time, it is expected to target levels near $2,520 and $2,600.

If gold rebounds from these levels, analysts expect it will continue trading within a horizontal area between support near $2290 and resistance near $2450, waiting to exceed or break any of these levels.

Disclaimer: The content published above has been prepared by CFI for informational purposes only and should not be considered as investment advice. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell. The information provided does not have regard to the specific investment objectives, financial situation, and needs of any specific person who may receive it, and is not held out as independent investment research and may have been acted upon by persons connected with CFI. Market data is derived from independent sources believed to be reliable, however, CFI makes no guarantee of its accuracy or completeness, and accepts no responsibility for any consequence of its use by recipients.

See All

Commodities