As of October 22, 2024, gold prices have reached $2,740.37 per ounce, marking a remarkable increase of nearly $652 (31.6%) in 2024 alone. Major banks, including Citi Bank and Goldman Sachs, predict that gold prices will continue to rise until 2025, with forecasts suggesting that gold could reach $2,900 an ounce by that time. This bullish outlook is supported by the U.S. economy entering a late-cycle stage, which is expected to lead to a deterioration in the labor market. [9dcdc87]
The recent surge in gold prices has been significantly influenced by ongoing geopolitical tensions, particularly in the Middle East, and the U.S. Federal Reserve's decision to cut interest rates by 0.5% on September 18, 2024. This easing cycle has made gold more attractive to investors, as lower interest rates typically boost demand for non-yielding assets like gold. [877a07ca][9dcdc87]
In addition to domestic factors, the upcoming U.S. presidential election on November 5, 2024, is anticipated to create market volatility, further driving gold prices higher. Analysts note that gold has reached record intraday highs 34 times in 2024, the most since 2011, underscoring its strong performance against all currencies, bolstered by rate cuts from the European Central Bank as well. [9dcdc87]
Technical analysis indicates that gold has support levels at $2,530-$2,510 and resistance at $2,572-$2,585. Meanwhile, silver support is at $29.65-$29.40 and resistance at $30.20-$30.50. Analysts like Hani Abuagla from XTB emphasize that geopolitical factors and ETF holdings will continue to support gold prices, although Wael Makarem from Exness warns that a stronger U.S. economy could limit gold's upside potential. [9a2fc072][fa3aea28][6ade5308]
In India, local jewelers are preparing for increased demand during the festive season, with expectations of prices rising to Rs 78,000 per 10 grams. Colin Shah from Kama Jewelry predicts a 10-15% increase in gold demand, driven by both lower interest rates and heightened geopolitical risks. [b5e3393c]