FX.co ★ Gold: between $1400 and $1700 – one dash?

The yellow metal, frozen in the current price range, gives the impression of an asset that retains stability. However, experts warn: this calm is deceptive. Gold is preparing for another rise in prices, experts believe.

Currently, the value of the precious metal continues to consolidate in the narrow range of $1507–$1508 per 1 ounce. On Thursday, October 24, it did not exceed $1492–$1494 per 1 ounce.

Gold continues the corrective movement, and the market forms a consolidation range around the level of $1490. Experts admit the possibility of reducing to $1490 and below, to $1460, to the 100-day moving average. In the case of negative developments, analysts do not rule out a sharp drop to $1400 per 1 ounce.

The pessimistic scenario for gold suggests that the price of the precious metal, not holding at $1460 per 1 ounce, will sink to $1400 and test the 200-day moving average, which is a key support level in the yellow metal market. Currently, it has formed "bullish" trends, which continue to strengthen.

According to currency strategists of the Australian-New Zealand Bank ANZ, the fair value of the precious metal is $1400 per 1 ounce. The key pricing factors are the Fed's interest rates, US inflation, and the US currency exchange rate.

Experts drew attention to the danger that lies in wait for gold in the event of a fall to $1400 per 1 ounce. They are confident that such sharp subsidence could catapult the precious metal to the $1700 per 1 ounce mark over the next six months. It turns out that the distance between $1400 and $1700 can be overcome in one jerk, as the decline in the price of gold will attract many investors to the market, which will provoke another price rally. The probability of such an outcome is very high, since the precious metal is considered an excellent asset for portfolio diversification, and investors are waiting for the right moment to increase their positions in gold.

In general, market expectations for the precious metal are optimistic. However, many believe that the "golden" stagnation will not last long and there will be a denouement. The current calm before the storm will end either in a recession or in growth. The price of gold is preparing to break through either the upper line or the lower, after which the market will face a strong movement.

In the short term, experts do not expect a drastic and prolonged fall in the value of the precious metal. They recommend to monitor the dynamics of the price of gold but warn that the yellow metal can significantly rise in price next year.