Gold tested 2000.00 an ounce last week and bounced off this area of support back to the 2030.00 area. The advice we are reading from a lot of analysts and market strategists is that potential gold investors will need to be patient until trends in the economy become clearer. Some analysts see a potential push below 2000.00 as a new buying opportunity. The interest rate cuts that most expected to start in March are now questionable with the economy remaining steady. We expect gold and silver to trade sideways to lower over the next few weeks with gold breaking 2000.00 and testing 1950.00 to 1960.00. On the upside, 2050.00 to 2060.00 will provide short term resistance. As for silver, a break below 22.00 is expected and a test of 21.00 is not out of the question.
Gold has some bullish momentum going forward, and it is likely that gold will try to test the 2090.00 to 2100.00 area on the upside. Interest rate cuts are the favorite topic these days and we believe it will take longer for rates to fall than most have been calling for. This will cause gold and silver to trade sideways in a narrow range. As a result of this we would expect Gold to trade between the support at 2000.00 and the resistance at close to 2100.00. We remain bullish and think Gold can make a new high in the 2300.00 area and Silver towards 28.00 an ounce during 2024.
We expected gold to trade between 1925.00 and 2075.00 for the last two weeks of 2023 while we were on holidays. We were half right as gold rallied to to top end of our trading range and stayed close to 2050.00 per ounce. The Friday employment numbers have muddied the waters somewhat as the Fed has signaled it may still have to raise rates instead of the market expectations of interest rate cuts starting as early as March. We believe the gold price will move lower and test 2000.00 an ounce and possibly dropping towards 1950.00 per ounce in the next few weeks.