Gold prices: analysts project bullish future with $3,000 target

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on May 10, 2024
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  • This environment has enhanced the allure of gold, pushing its prices up in Asian trading on Friday.
  • Spot gold rose by 0.3% while futures climbed by 0.9%.
  • As tensions escalate, more investors are turning to gold as a safe haven, supporting its price ascent.

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Gold prices have seen a notable increase, driven by a cooling U.S. labor market which has contributed to a weaker dollar and lower Treasury yields. This environment has enhanced the allure of gold, pushing its prices up in Asian trading on Friday.

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Spot gold rose by 0.3% while futures climbed by 0.9%, setting the stage for gold to potentially end its recent three-week correction on a positive note.

Analysts see bullish future with $3,000 target

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The long-term outlook for gold remains strongly bullish, with market analysts and technical charts suggesting a possible rise to the $3,000 mark.

The formation of an ascending broadening wedge pattern beginning from the 2016 lows of $1045.40, along with an inverted head and shoulders formation noted from 2020 to 2023, underscores a persistent upward trend.

These technical patterns, combined with a breakout through the long-term pivot and neckline at $2,075, bolster the bullish sentiment, indicating that minor seasonal corrections may be overlooked as the gold rally continues.

Geopolitical tensions underscore gold’s safe-haven appeal

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The ongoing geopolitical conflicts, particularly in the Middle East, have played a significant role in boosting the demand for gold.

As tensions escalate, more investors are turning to gold as a safe haven, supporting its price ascent.

The recent breach of the $2,075 level, now considered a strong support in case of any corrections, highlights the metal’s appeal during times of global instability.

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