Where Will Gold Prices Stop? Latest Evaluations from Analysts

Current Status of Gold Prices

Following record levels, profit-taking and the acceptance of President Donald Trump's ceasefire and hostage exchange plan in Gaza by Israel have led to a decrease in geopolitical risks, causing gold prices to pull back. After an early decline, spot gold has rebounded during the day and is currently trading at $3,979, which is 0.06% above yesterday's closing price.

Analysts' Views

Analysts indicate that the current pullback is likely to be short-lived. The expectation that the U.S. Federal Reserve (Fed) will continue its interest rate cuts remains a fundamental support factor for non-yielding gold. In addition, developments regarding the potential closure of the U.S. federal government could create a new wave of uncertainty in the markets.

Data Uncertainty May Affect the Market

Deutsche Bank analysts pointed out that if the government shutdown prolongs, the CPI data expected to be released on Wednesday may be delayed. The bank's statement included, "If the shutdown extends into next week, we will not be able to get the CPI data expected to be released on Wednesday. This will increase uncertainty regarding the U.S. economy."

The Future of Gold Prices

Israel's approval of Trump's ceasefire plan in Gaza has led to a decrease in the geopolitical risk premium and a short-term reduction in safe-haven demand. According to analysts, in the upcoming period, the direction of gold prices will be shaped by macroeconomic data from the U.S. and signals regarding the Fed's interest rate policy. These factors, which investors should closely monitor, will determine the direction of the gold market.