GLDM - Gold settles at six-week high; Citigroup raises 2024 gold price forecast

2023-07-18 17:45:12 ET

Gold futures jumped to a six-week high on Tuesday, boosted by weakness in the U.S. dollar and lower Treasury yields that recently have helped sustain prices of precious metals and commodities.

"The technical picture for the gold market has improved significantly," with support at ~$1,950/oz, and "gold can certainly move towards $2,000 if incoming data suggests the Fed will back off after one more hike this month," Kitco analyst Jim Wyckoff said.

New U.S. government data showing weaker retail sales and industrial production added to expectations for an end to the Federal Reserve's rate-hiking cycle, causing Treasury yields to decline, thus aiding low- and zero-yielding assets such as gold and silver.

Front-month Comex Gold ( XAUUSD:CUR ) for July delivery ended +1.2% to $1,977.20/oz, its fifth gain in six sessions and best settlement since June 1, while July Comex silver ( XAGUSD:CUR ) closed +0.9% to $25.084/oz, its highest settlement value since May 12.

ETFs: ( NYSEARCA: GLD ), ( GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ ), ( NYSEARCA: SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ), ( SLVP )

Citigroup edged its 2024 forecast for average gold prices up to $2,040/oz and said it sees an opportunity to "buy the dip" as U.S. inflation data eases.

Citi sees Q3 gold prices averaging $1,935/oz, down a bit from its previous forecast of $1,950/oz, before rising to a record $2,100/oz in Q2 2024, adding mid-to-late Q3 could be a "decent entry point" for investors.

More analysis on gold and silver:

• $4,000 Gold Is Still Possible After The Fed Starts Easing
• BRICS Gold Standard Is A Big Opportunity
• Fundamentals For Gold And Silver Keep Improving

For further details see: