Gold prices are hitting a new all-time high this month in March 2024. The XAU/USD charts touched a high of $2,131 on Wednesday leading to commodity investors book massive profits. The precious metal is steadily climbing up the charts this week as speculations emerge that the Federal Reserve will pause interest rate hikes till June. The development made the U.S. dollar dip while gold, oil and gas, and other commodities headed north in the charts.
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‘Strong Buy’ Call For Gold After Prediction Estimates Its Price To Reach New High of $2,700
On the heels of a rally, leading price prediction firm Techopedia has given a ‘strong buy’ call for gold. The price forecasting firm has predicted that gold prices could break out and reach a new high of $2,700. The estimates suggest that gold could hit the $2,700 mark sometime next year in 2025.
That’s an uptick and return on investment (ROI) of approximately 27% from its current price of $2,125. The important factors that will push gold prices are the Fed rate cuts and gold accumulation from Central Banks.
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On the downside, the firm predicted that if the markets experience an unforeseen disaster, gold could fall to the $1,750 level. Central Banks across the world have been accumulating the precious metal massively since 2022.
If the commodity markets maintain the same momentum, the precious metal will print new highs along the way. This attracts investors as gold is seen as a safe haven amid economic uncertainties. The precious metal has value even during tougher financial times while its glitter barely fades in the market.
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“We, therefore, expect another year of strong buying overall, and if the price action over the last two years is anything to go by, Central Bank buying in excess of the longer-term average is very likely to provide solid price support,” read a report from the World Gold Council.
