Gold is currently trading near $3,400 per ounce, sparking investor speculation about whether the metal could hit the key $3,500 level before July ends. However, with the bullion now being in a consolidation phase, analysts remain divided on its short-term trajectory, CBS News reports.
Ben Nadelstein from Monetary Metals says gold’s hike to $3,500 is unlikely to happen unless the Federal Reserve changes its policies. In contrast, Brett Elliott of APMEX suggests that a significant event, such as a sudden shift in global trade agreements, could trigger a sharp price spike. The movement of gold is influenced by several key factors, including actions taken by central banks worldwide, geopolitical instability, US inflation trends, and dollar fluctuations.
Analysts polled by CBS News advise investors to closely watch the Fed’s upcoming decisions. They believe that current prices already reflect most known risks, implying that unforeseen market shocks would be necessary to push gold to new heights—a scenario considered unlikely in the remaining weeks of July. Nevertheless, gold is still viewed as a safe-haven asset.