Gold’s relentless ascent to new all-time highs continues to captivate markets worldwide. With the precious metal closing a third consecutive week of gains after a weekly appreciation of 4.28%, leaving the non-yielding bullion over 13.5% year-to-date, the enthusiasm surrounding gold remains palpable. Speculative buying, coupled with persistent geopolitical tensions in the Middle East, has propelled gold prices to record levels, overshadowing robust US job growth data in March.
Barrons.com predicts even loftier heights for gold, suggesting a potential surge to $4,000 per ounce or beyond. Technical indicators support this bullish outlook, with gold’s recent breakthrough of final resistance at $2,200 indicating a clear path towards unprecedented territory. UBS echoes this sentiment, revising their year-end target to $2,500 per ounce, driven by expectations of increased demand, particularly from exchange-traded funds (ETFs).
Central bank buying, especially notable in Asia with China’s continued accumulation of gold reserves for the 17th consecutive month, adds substantial support to gold’s upward trajectory. Despite headwinds from a stronger US dollar and elevated interest rates, gold’s resilience shines through, buoyed by robust official sector demand and shifting market dynamics.
The markets are closely monitoring gold’s momentum, with anticipation surrounding the Federal Reserve’s interest rate decisions and geopolitical developments remaining key drivers. As gold marks its seventh consecutive session of record highs, the allure of this non-yielding bullion remains undeniable, drawing attention from both seasoned investors and newcomers alike. With uncertainty looming in global markets, gold’s status as a safe haven and store of value has never been more apparent, solidifying its position as the ultimate asset of choice in turbulent times.
Sources:TradingView, Trading Economics, Barron.com, Dow Jones Newswire.
Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst
Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.
Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.
CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.
