Gold Investing: Analyzing the Potential for New Highs in 2024

Current Gold Market Outlook

The chances of gold making a new high in 2024 have potentially diminished, with technical indicators pointing to further correction. As of press time, the yellow metal was trading at $2,630, reflecting minimal gains of 0.18% on the daily chart. However, bearish sentiment has spread over the monthly timeframe, and the inflation hedge has plunged by almost 4%.

Market Reactions and Technical Analysis

Gold recorded its largest single-day drop since June 7, plunging by 3.4% on November 25 to trade at $2,619, ending a five-session rally. This drop was a reaction to the news that Israel was nearing a ceasefire with Hezbollah, diminishing gold's safe-haven appeal.

Furthermore, market reactions included President-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary, assessed as a negative influence on trade relations. Analysts note the market's mixed responses to potential trade strategies.

Future Predictions for Gold Prices

Following recent price movements, gold closed below its 20-day moving average, signaling a reversal of previous gains. An analysis suggests gold is unlikely to hit new highs, with significant levels to watch at $2,537; falling below this could confirm a downward trend.

• Gold is potentially entering a sell-off phase due to recent fundamental shifts.
• Expert insights warn of further declines, with possibilities of hitting the $2,530 mark.
• Previous expectations of a rally to $3,000 now face uncertainty.