Gold prices remain on a slippery slope as the XAU/USD charts are on a downward spiral this month in February 2024. The price of gold dipped from a high of $2,100 this year and is now hovering around the $2,240 level. It is now facing strong resistance at this level. The precious metal dipped after the US dollar outperformed all leading currencies and came out on top.
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The US dollar index (DXY) is now at 104 and steadily climbed from a low of 101.80 this year. A stronger US dollar dimmed the lights for gold making it to head south in the charts for two weeks. Read here to know how the US dollar will fare this year in 2024.
Gold Price Prediction: Fresh All-Time High of $2,250 On the Cards
Despite the market turmoil, commodities are expected to grow this year in 2024. Leading commodity analysts remain bullish and are confident that the markets will recover after Q2 this year. The dip is now a good time to accumulate and wait to create profits during the second half of 2024. Historically, gold has always delivered a positive monthly average return during on-hold interest rate periods by the Federal Reserve.
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The Feds paused the interest rate hike for the fourth time in a row which could lead gold prices to recover. Naveen Mathur, the Director of Commodities at Anand Rathi forecasted that gold prices will shine from Q2 of this year. Moving ahead, he estimated that gold prices have a chance of reaching fresh all-time highs and could hit $2,250 in 2024.
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That’s an uptick and return on investment (ROI) of approximately 25% from its current price. However, on the downside, if the markets are hit with unexpected consequences, gold prices could hit a low of $1,925 to $1.860, forecasted Comex.