Gold Still in Demand Despite Negotiations
The United States has begun to claim that many countries have negotiated with them to reach a trade agreement to reduce tariffs that are planned to be implemented 3 months from now, which has briefly caused gold prices to pull back slightly from their all-time highs.
Market sentiment also looks to be improving overall to start this week due to the exemption of tariffs on technology products from China. Overbought signals indicate a potential pullback, but gold remains strong with key support levels intact. So if we look at it from the technical side itself, several time frames have indicated overbought which in the short term could cause gold to experience a technical correction.
While other aspects of the fundamentals show that Washington's changing attitude marked by a change of course, delays in tariffs against many countries, and uncertainty make businesses wary of investing, creating perfect uncertainty where gold tends to thrive. Other support comes from increased predictions for gold from several large banking companies in the US, one of which is Goldman Sachs.
Goldman Sachs is said to have raised its forecast for gold prices by the end of 2025 to $3,700 an ounce, up from $3,300. It expects prices to range between $3,650 and $3,950, driven by higher demand from central banks and increased investment in gold-backed funds due to recession fears. The bank also noted that if a recession were to occur, more money could flow into investments in the metal, pushing gold prices to $3,880 an ounce by the end of the year.
Gold prices will remain supported although any declines are likely to be short-term. Volatility is likely to remain high and price swings will be the norm.
Source : (mrv@Newsmaker)
