{"id":77847,"date":"2024-03-05T14:36:45","date_gmt":"2024-03-05T12:36:45","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=77847"},"modified":"2024-03-05T14:36:45","modified_gmt":"2024-03-05T12:36:45","slug":"gold-outlook-set-to-reach-all-time-highs","status":"publish","type":"post","link":"https:\/\/www.smartindonesiafx.id\/en\/gold-outlook-set-to-reach-all-time-highs\/","title":{"rendered":"Gold Outlook: Set to Reach All-Time Highs"},"content":{"rendered":"\n

Gold\u2019s price seems to have found support since our last report<\/a> with the precious metal now eyeing its all-time high figure of two thousand one hundred and thirty six dollars. The market\u2019s expectations for the Fed\u2019s intentions and recent tensions in the international scene appear to have influenced the path of Gold\u2019s price in the past few days. Today we are to discuss the fundamental challenges laid ahead for the precious metal, while we will be concluding this report with a technical analysis of gold\u2019s daily chart.\u00a0<\/p>\n\n\n\n

The Fed\u2019s intentions<\/strong> for Gold<\/strong><\/h2>\n\n\n\n

Gold market participants continue to monitor the Fed\u2019s intentions, with market expectations for a rate cut by the Fed in June seemingly on the rise. Currently, Fed Fund Futures imply a sixty nine point two percent probability for the bank to cut interest rates during their June meeting. The rising expectations by market participants may have weighed on the greenback on a fundamental level, thus allowing the precious metal to capitalize on the dollar\u2019s inactivity and move higher given their inverse relationship. <\/p>\n\n\n\n

However, we should note that Fed Fund Futures expectations on Monday for a June rate cut were higher at seventy one point seven percent and that their slight decrease could be attributed to comments made by Atlanta Fed President Bostic on Monday. In particular, the policymaker in his speech stated that \u201cit is premature to claim victory in the fight against inflation\u201d, thus raising the question as to whether Atlanta Fed President Bostic amongst other policymakers, is contemplating if they should cut rates 3 times this year, or if they should defy market expectations and cut less or none at all. <\/p>\n\n\n\n

As such, should other policymakers and in particular Fed Chair Powell, who is expected to speak tomorrow, re-iterate these hawkish remarks, we may see the dollar gaining which in turn could weigh on Gold\u2019s price given their inverse relationship with one another.<\/p>\n\n\n\n

US Yields<\/strong><\/h2>\n\n\n\n

The relative deterioration of US yields over the past week may also have allowed gold\u2019s price to rise, as the interest-bearing assets become less appealing to investors, thus potentially funnelling inflows into the precious metal. <\/p>\n\n\n\n

Furthermore, should the US Yields continue their decline, thus reducing their appeal to investors even further, we would not be surprised to see gold\u2019s price moving higher. On the other hand, should US yields rise, thus allowing bonds to regain their appeal, it could weigh on the non-interest-bearing precious metal.<\/p>\n\n\n\n

China-Taiwan<\/strong><\/h2>\n\n\n\n

China\u2019s much-anticipated National People\u2019s Congress for 2024 is underway and is due to end later this week. On Tuesday Premier Li Qiang, China\u2019s number two delivered a government report during the opening of the National People\u2019s Congress, in which the language against Taiwan has apparently toughened, with the Chinese Government dropping the mention of a \u201cpeaceful reunification\u201d with the island, which it considers to be a breakaway region from the mainland. <\/p>\n\n\n\n

The adoption of harsher rhetoric may imply that China is preparing to bring the island back into the fold, with military means if necessary. Such a scenario, appears to be in line with comments made by President Xi Jinping during his New Year\u2019s address last December in which he stated that China\u2019s reunification with Taiwan is inevitable. As such, with the risk of geopolitical tensions in the region seemingly increasing in the current year, gold may see safe haven inflows given its status as a hedge during times of uncertainty.<\/p>\n\n\n\n

Gold: Technical Analysis<\/strong><\/h2>\n\n\n\n

XAUUSD Daily Chart<\/em><\/strong><\/h3>\n\n\n\n
\"XAUUSD<\/figure>\n\n\n\n