Could gold’s upswing continue further?

The price of gold exceeded the $2000 level again for the first time in five and a half months last Friday. Observers and economic analysts are keen to analyze the expectations of the yellow metal, which at the time of writing is trading around $1994 per ounce.

Analysts believe that gold could lose its recent momentum if the support it stimulates through buying by speculative investors diminishes and the increase in the price of gold is likely to lose momentum if tailwinds diminish.

Moreover, the Federal Reserve will likely have to raise its key interest rate again, contrary to what the market currently expects, after the US economy saw growth in the third quarter of about 5% year-on-year, the strongest growth rate in seven quarters.

During the press conference following the latest FOMC meeting, Fed Chairman Jerome Powell left the door open to raise interest rates again in December, and it remains to be seen whether Friday’s data will indicate the hoped-for development in the US labor market.

If this does not materialize again, a rate hike by the Fed in December may become more likely again. It is true that interest rate expectations have had less of an impact on the price of gold recently, but that does not necessarily mean that this will be the case. In the coming weeks.
Observers also warned against assuming that the rise in gold that markets have witnessed in recent weeks will continue, simply because it was due to exceptional circumstances, perhaps the most prominent of which are the current geopolitical conditions and tensions that have made safe haven assets a remarkable attraction.