Gold Price News: Stabilization after setback

On October 3, 2024, the gold market is in a consolidation phase, with a current price of around USD 2,657 per troy ounce. This represents a slight decline compared to the recent highs. However, the market is gradually stabilizing. Market participants are watching closely to see how geopolitical and macroeconomic conditions develop.

In addition to the well-known geopolitical tensions – particularly in the Middle East – new factors are coming to the fore. A sustained increase in demand for gold, particularly from central banks in emerging markets such as China and India, continues to buoy the gold market. These central bank purchases have accounted for around 15% of global gold production on the London OTC market since the beginning of the year and are a key price driver. Goldman Sachs is raising its price target to USD 2,900 by the beginning of 2025 due to this momentum. 

Another key determinant is global monetary policy. While interest rates are slowly being lowered, this development is creating additional demand for gold as an inflation-proof asset. The potential for further interest rate cuts is being closely monitored by the markets, as this usually leads to a significant increase in demand for gold.

From a technical point of view, gold remains in a consolidation phase below the resistance level of USD 2,670 per troy ounce. It is expected that the gold price will stabilize in the next few days and possibly rise to the psychologically important mark of USD 2,700 per troy ounce. However, should the price fall below the support level of USD 2,623, short-term downward movements could occur.

Continued central bank purchases and loose monetary policy remain the key factors influencing the gold market. Although the price is currently taking a break, long-term forecasts point to a further increase. Investors should focus on monetary policy developments and geopolitical tensions in order to benefit from possible price movements.