Deutsche Bank Joins Goldman Sachs in Bullish Gold Forecast
Published: Tuesday, 16 April 2024 02:27 | 
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Deutsche Bank has increased its gold price forecast to $2,600 by the end of 2024. This follows a similar bullish adjustment by Goldman Sachs, who now expects gold to reach $2,700 per ounce. Both banks attribute their optimistic forecasts to substantial investment inflows and rising geopolitical tensions, particularly citing the Middle East conflict as reinforcing gold's appeal as a safe haven. The recent failed missile attack by Iran on Israel further boosts this sentiment. Deutsche Bank also notes that while some early investors might take profits, new investors are likely to enter the market, sustaining demand and supporting higher prices. This sentiment has contributed to a 20% increase in gold prices over the past two months, with expectations for continued upward movement.
Powell Warns of Extended High Interest Rates in Face of Persistent Inflation
Published: Tuesday, 16 April 2024 02:19 | |
| Federal Reserve Chair Jerome Powell has moderated expectations for interest rate cuts, citing persistently firm inflation figures in the first quarter that have introduced uncertainty about the Fed's ability to lower rates without economic deceleration. Powell highlighted a notable shift in the Fed’s stance after inflation readings consistently exceeded forecasts for three consecutive months, undermining earlier hopes for pre-emptive rate reductions. Despite previous optimism that a few more months of data could reaffirm their inflation targets, recent trends suggest a longer-than-anticipated timeframe to gain this confidence.
Record Gold Rally Hits Pause as U.S. Treasury Yields Climb
Published: Tuesday, 16 April 2024 09:45 | |
| Gold prices experienced a slight decline on Tuesday, falling 0.3% to $2,375.50 per ounce as a result of high U.S. Treasury yields and profit-taking by investors. The dip follows a significant rally that brought gold to a record high of $2,431.29 last Friday. The increase in yields, particularly the 10-year Treasury note reaching 4.63%, reflects a market reaction to stronger-than-expected U.S. retail sales in March. This economic indicator has led to a decrease in expectations for rate cuts in 2024. Despite the current pause, gold has risen 15% this year, buoyed by prolonged inflation expectations, heightened safe-haven demand due to ongoing Middle East tensions, and substantial buying by central banks.
Citi Analysts Eye $3,000 Mark for Gold
Published: Tuesday, 16 April 2024 09:26 | |
| Gold prices have surged to near-record highs, bolstered by increased safe-haven demand amidst escalating tensions in the Middle East. Following Iran's attack on Israel, involving over 300 drones and missiles, the demand for gold has intensified, with the June futures contract closing at a record $2,383 per ounce. Analysts, including those from Citi, predict that gold could potentially reach $3,000 if the geopolitical situation worsens, leading to further market instability. Market analyst Bartosz Sawicki anticipates that any significant retaliation by Israel could not only escalate the conflict but also drive further increases in gold prices, alongside rises in oil prices and the U.S. dollar.
Gold Particles Found in Emissions from Antarctica’s Tallest Volcano
Published: Tuesday, 16 April 2024 09:22 | |
| In Antarctica, American geologists made an incredible find: an active volcano that's expelling particles of gold. This phenomenon occurs as hot gases from the volcano carry gold from deep within the volcanic rock to the surface and even beyond, with particles found as far as 1,000km away. The volcano, standing at a height of 3,794 meters, continues to be active, periodically releasing these valuable particles into the atmosphere, as reported by New Scientist and IFL Science.