"Gold last traded at $5,051 and could test $7,000, even $10,000 at some point, according to analysts. That's on speculation of more rate cuts, mounting geopolitical tensions, and a wave of central bank buying, especially as countries diversify away from the U.S. dollar. In fact, according to SAMCO Securities, gold could test $7,000, driven by further geopolitical uncertainties, sky-high deficits, central bank demand, and the real interest rate environment, as noted by Business Standard."
"They added that a key driver of gold prices depends on the outlook for interest rate cuts. Markets are currently pricing in two cuts this year, but the firm seems to see room for more, noting that "three cuts could push gold to $7,000 by year's end (SBG's base case) and a more dovish Fed may send gold to $10,000.""
"The major indices are down again. The S&P 500 is up about 0.13%, or by nine points. The SPDR S&P 500 ETF (SPY) is down fractionally. The Dow is down 0.18%, or by 90 points. The Nasdaq is down 0.17%, or by 42. Meanwhile, Bitcoin is getting beaten up again, down $1,572 to $68,590. Not helping, retail sales slowed. Retail sales were flat for December, following a 0.6% increase in November."
Major U.S. equity indices slipped while the S&P 500 showed a small gain and Bitcoin fell sharply. Retail sales were flat in December, missing expectations and slowing annual growth. Analysts and brokerages project substantial upside for gold, citing potential additional interest-rate cuts, geopolitical tensions, rising deficits, and increased central bank purchases. SAMCO and SBG Securities outline scenarios where three policy cuts could push gold toward $7,000 and a more dovish Fed could send it toward $10,000. Market pricing of rate cuts and central bank reserve behavior are presented as key drivers of gold's outlook.
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