#InsiderTime #Gold #FederalReserve⠀
🚀 Insider Time: Is $3000 Gold Real?⠀
Bank of America and Citigroup simultaneously published forecasts that the price of gold may rise to $3000 per ounce in the coming year, although current capital flows do not foreshadow this yet. However, the realization of such a scenario will require the fulfillment of several conditions.
⠀
Such a serious increase in the price of precious metal will require strengthening of non-commercial demand, the dynamics of which, in turn, will depend on the reduction of interest rates of the Federal Reserve System.
⠀
The first signal of such demand will be increased capital inflows into physical gold-backed exchange-traded ETFs and increased trading volume on the LBMA. For example, in Q1 2024, non-commercial demand for gold increased by 3%, which was enough to justify the $2200 price.
⠀
The trend of a shrinking dollar volume in the reserves of global central banks is also driving demand. It is thanks to purchases by the central banks of Turkey, China, India and EU countries today gold prices exceed the forecast "fair" value of the precious metal by about 26%, or $500 per ounce.
⠀
According to analysts of Citigroup, one of the main beneficiaries of the reduction of FRS interest rates will be gold and all market assets. Interestingly, the correlation between intraday fluctuations in gold prices and other financial indicators, including the dollar exchange rate, remains. Despite the nervous behavior of the price in the last few days, the interest in buying does not weaken and accumulates above the key zone of $2350. So, the forecasts of price growth to the sacral level of $3000 have good chances for realization.
⠀
For those who are ready to buy now, after the breakdown of $2350, we are looking for the first target in the zone of $2390-2420. A strong positive foundation is needed for a confident movement above. But there are fewer and fewer factors for the decline, so let's buy.
⠀
In any situation, we behave reasonably and don't forget about risks.
⠀
Profits to y’all!