Unpredictable fluctuations, predicted to continue to increase

World gold prices stabilized with spot gold increasing 1.3 USD to 2,028.8 USD/ounce. Gold futures last traded at 2,036 USD/ounce, up 2.5 USD compared to yesterday morning.

The world gold market stabilized as investors remained cautious ahead of US inflation data to be released later this week. The data is expected to provide more detailed information about the future policy direction of the US Federal Reserve (Fed).

If the inflation numbers surprise, the Fed may not be able to cut interest rates yet, which would put pressure on precious metals markets, said Kitco Metals senior analyst Jim Wyckoff.

Currently, analysts predict price inflation will slow in December. The New York Fed survey earlier this week also showed that consumers expect inflation to decline, along with income and spending increases. Household spending will gradually increase in the coming years.

Looking at the direction of gold in the medium term, MKS PAMP metals strategist Nicky Shiels forecasts gold prices will fluctuate in the range of 1,900 to 2,200 USD/ounce in 2024 and prices will reach a record high in the first half. this year, boosted by expectations of interest rate cuts.

Experts also do not rule out the possibility that gold will conquer the 2,300 USD/ounce mark when mentioning other factors such as geopolitical instability and the trend of de-dollarization in the world.

On the other side, Shiels said that gold is also likely to fall back to $1,600 an ounce if persistent inflation forces the Fed to maintain its restrictive monetary policy. She said that the possibility of this scenario happening is 20%.