Experts say gold prices to stay under pressure in near future
Date
7/21/2024 10:01:52 AM
(MENAFN) Economic experts and financial market analysts predict that Gold prices will remain under pressure in the near future, as markets await critical US economic data that could influence future fiscal policies. Recent fluctuations in gold prices have been attributed to several socioeconomic factors, with a notable reduction in hedge fund allocations for gold being a primary driver of the recent price declines.
Gold prices have experienced a significant drop over the past two days, following a notable increase of over 19 percent since the beginning of 2024 and about 13 percent in 2023. Despite these gains, the outlook suggests continued pressure on gold prices in the coming period. Globally, the spot price of gold has decreased by 0.3 percent, settling at approximately USD 2315.34 per ounce, while US gold futures fell by 0.6 percent to USD 2328.60. This follows a notable rise of USD 38.90 last Tuesday, with prices closing at USD 2467.80 per ounce. In Qatar, the price of 24-carat gold per gram dropped significantly to about SAR 281.87 on Friday, down from SAR 287.72 on Wednesday.
Financial advisor Ramzi Qasimia explained to Qatar News Agency (QNA) that the recent decline in gold prices is largely due to the US dollar regaining some strength. This shift follows a period of significant declines in gold prices, amid growing expectations that the Federal Reserve may reduce interest rates in its upcoming September meeting. Qasimia also attributed the recent price drop to profit-taking activities, which have led to a decrease of approximately 3.5 to 4 percent over the past two days. He noted that this decline comes after gold prices reached record levels the previous week. Investors are currently seeking safer investment options, particularly in the context of rising global inflation rates across major economies.
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