Gold prices have experienced a significant increase earlier this year, reaching a high of $2,450 in May 2024. However, since then, the momentum has slowed down, and prices are currently below the 50-day moving average. Analysts at ABN AMRO are cautious about the future outlook for Gold prices and have maintained their forecast at $2,000 per ounce for December 2024.
According to ABN AMRO analysts, the key support zone for Gold prices is between $2,220 and $2,275, where previous tops and bottoms are concentrated. If prices drop below this level, the next support zone is at $2,115, where the 200-day moving average comes into play. A further decline below the 200-DMA could signal a negative long-term trend for Gold prices.
The analysts highlight several factors that contribute to their cautious stance on Gold prices. Despite a positive trend, the momentum is decreasing, and the traditional relationships between Gold prices, the US dollar, and US real yields have become less reliable. Additionally, there is currently no shortage of physical Gold in the market, which could further impact prices.
It is essential to note that the information provided by ABN AMRO analysts contains forward-looking statements that involve risks and uncertainties. Investors should conduct their own research before making any investment decisions, as the content on these pages is for informational purposes only and should not be considered as investment advice.
In conclusion, while the long-term trend for Gold prices remains positive, the weakening momentum and changing relationships with key factors indicate a level of caution for the future. The forecast of $2,000 per ounce by December 2024 reflects the analysts’ careful approach to the volatile nature of the Gold market.