The global price of gold is anticipated to continue its upward trajectory today, following the precious metal’s record-breaking performance in the London gold market. Analysts at Monex Investindo Futures predict that, based on the one-hour chart, the price of gold has the potential to increase in the short term during today’s Asian trading session. This is contingent on the price remaining within the bullish channel, with the nearest resistance targeted at US$2,084.30 before aiming for stronger resistance at US$2,090.33.
Furthermore, the positive sentiment for the price of gold on the 1-hour chart is also reflected in the movement of the MACD indicator, which is in the bullish zone, above the 0.00 level, as stated by Monex analysts on Thursday (28/12/2023).
Additionally, the London Bullion Market Association (LBMA) reported that the benchmark gold price in London reached an all-time high of US$2,069.40 per troy ounce at Wednesday’s auction (27/12/2023) local time, surpassing the previous record set in August 2020.
Ruth Crowell, CEO of LBMA, emphasized the significance of gold as a store of value amid global economic and geopolitical upheaval. The LBMA is a prominent gold bullion trading body that certifies gold refining companies to access the London gold bullion market, the largest market globally. The LBMA gold price serves as the global benchmark price for gold delivered in London.
According to LBMA, the price of gold opened this year at US$1,835.05 and has since risen by 12.7%. Since the turn of the century, the price of gold has increased more than sevenfold.
In the US spot market, the price of gold reached its highest level in over three weeks in anticipation of a decline in US interest rates next year. This has resulted in a weakening US dollar against six major currencies.
Lou Brien, market strategist at DRW Trading in Chicago, acknowledged the possibility of a rate cut by The Fed due to low inflation, stating that it might be a favorable scenario.
The live gold price movements indicate a strengthening of the price of gold, with an increase in both the spot gold price and the price of gold for February 2024 Comex contracts.
In summary, the global gold market is witnessing significant movements and indicators, hinting towards a positive outlook for gold prices in the near term. This is supported by strong performances in both the London market and the US spot market, as well as the sentiments of industry experts. As such, it is crucial for investors and stakeholders to closely monitor these developments to make informed decisions.
