Experts explained… The rise in gold is in the third phase: 4 factors came to the fore – Last Minute Economic News

Looking at its movements since the 1970s, it is stated that gold, which made a strong attack in the period until 1982, went through a second increase phase in the 2000-2014 period, and is in an upward phase again after 2020.

Ounce gold continues to break records due to the possibility of the Fed lowering interest rates this year and the continued demand from central banks.

From Ekonomim.com ‘Evolution Küçük’According to experts, considering its historical movements, gold is in its 3rd strong upward cycle and prices have the potential to rise further in the coming months.

ONE YEAR INCREASE IS CLOSE TO 14 PERCENT

An ounce of gold rose to $2,304 this week, breaking a new record, and as of April 5, it is trying to remain horizontal in the range of 2,280-2,300. There has been an increase of more than 7 percent in prices in the last month. The increase in the last 1 year is close to 14.

Gold is gathering investors, driven by Fed Chairman Powell’s confidence that it would be appropriate to start reducing borrowing costs “at some point this year.” Geopolitical tensions also feed gold.

“CORRECTION MAY OCCUR” WARNING

It is warned that the rise is rapid and that a correction may occur in the near future. According to experts, the US Nonfarm Employment data, which will be announced this afternoon, is the most important short-term factor for prices. If the rise continues, 2,330 above acts as an important resistance, while $ 2,237 is an important support in possible sales.

In the long term, the upward trend in gold is maintained. In the report published by the precious metal transaction and analysis company MKS PAMP, it was noted that ounce gold was in an upward trend and the price expectation was revised upwards. Looking at its movements since the 1970s, it is stated that gold, which made a strong attack in the period until 1982, went through a second increase phase in the 2000-2014 period, and is in an upward phase again after 2020.

FACTORS THAT STRENGTHEN EXIT EXPECTATIONS

MKS Pamp increased its average price expectation this year from $2,050 to $2,200 and summarized the reasons behind it as follows:

• Gold is like a scoreboard showing the ability of the Fed and other major Central Banks to control inflation, and the banks are losing the ball.

• Gold now seems to have formed a base at $2,000. We expect gold to repeat the bull market gains that have typified past interest rate cut cycles in 2024; This corresponds to 2475 dollars per ounce, or even almost 2600 dollars per ounce if the annual transportation cost is taken into account.

• While a rise above $200 in the Precious Metals market is a significant move for active specialists, a move below $20 in ETF terms is a minimalist move in the minds of very wealthy or generalist investors waiting on the sidelines.

• Discourses on debt/deficit are gaining traction in the upcoming US elections. This could put pressure on the dollar and support gold.