Gold Market in a State of Confusion: Analyst Predicts Record Collapse and Recovery

The gold market is in a state of confusion, as a result of the frequent changes during the current period, as the yellow metal recorded record levels in Egypt.

Analysts expected that the price of gold would decline by a large percentage before returning to rise again, including Harry Dent, founder of HS Dent, who says that gold, which is currently trading at about $ 2,000 an ounce, will reverse and achieve a significant decline, and enter the largest collapse that can be seen in its wave. The second, before bouncing back up.

collapse and then recover

He explained that gold will collapse, along with other assets, to $900 an ounce, meaning that it will lose more than 50% of its value, but he said that it will eventually reach $4,000 after the market recovery and the next economic boom.

Dent predicts gold will reach as low as $900 an ounce by mid-2024.

The decline in the price of gold

He noted that gold is not a safe haven, expecting gold to drop to $900 to $1,000, and this will be much lower than other commodities.

gold prices

Dent, who predicted a decline in the price of gold by 2024, said that India’s growth bodes well for the long-term outlook for gold prices, noting that the country’s gold consumption is the second largest importer of gold in the year.

He added that if India flourishes, gold will flourish, because Indians buy and use gold for security, jewelry and everything else.

Global gold prices

Gold futures fell at the close of trading on Friday evening, due to the strength of the US dollar and the rise in US Treasury bonds.

gold price

Upon settlement, gold futures contracts fell slightly by 0.1%, or $1.40, to $1977.20 an ounce, while recording weekly gains of about 0.4%.

Fed

Gold fluctuates in a range between 1940 and 1990 dollars and is likely to remain so until inflation data and the Federal Reserve’s decision next week, according to Reuters.

American inflation

Traders are awaiting the release of the US inflation report for May, which is scheduled for Tuesday, June 13th, a day before the Federal Reserve announces its interest rate decision.

Meanwhile, China raised its gold reserves for the seventh consecutive month to 67.27 million ounces by the end of May.