BTCCRZAE BTCCRZAE
  • Crypto News
    • Crypto Coins
    • Altcoin News
  • Bitcoin Investment
    • Bitcoin Regulation
  • BlockChain
  • Technology
  • FinTech
Reading: Gold Prices Forecast How Overpriced Without China
Share
Your Premier Source for Crypto WisdomYour Premier Source for Crypto Wisdom
Font ResizerAa
Search
Follow US
Copyright © 2014-2023 Ruby Theme Ltd. All Rights Reserved.
Technology

Gold Prices Forecast How Overpriced Without China

Ali Raza By Ali Raza Last updated: November 19, 2024 4 Min Read
Gold Prices Forecast: How Overpriced Without China?
SHARE

Gold Prices Forecast The United States labor market has shown incredible data, which suggests rising interest rates, consequently causing a dramatic drop in the price of gold. This is the first time in eighteen months that China has not purchased gold, which impacts the market sentiment and pricing. Due to the strong labor market in the United States and high interest rates, traders expect the gold price to still be under pressure.

Contents
Gold Faces PressureChina’s Impact on Gold PricesU.S. Labor Market StrengthMarket Reactions and ForecastChina’s Influence on Central BanksMarket Forecast Bearish Outlook

Gold Faces Pressure

The initial moves up were undone as the Gold Prices Forecast ended the week very low. The U.S. labor market performed better than the forecast, and China’s May pause in bullion buying were the two factors leading to the decrease, suggesting that U.S. interest rates will remain higher for longer than anticipated. China’s non-participation in gold buying causes the risk of price depreciation of the commodity. According to the weekly chart, if gold has fallen from $2,217.22 to $2,130.29 within the past few weeks, it may fall by $75 to $150 if this is the trend.

Gold Faces Pressure

The XAU/USD pair lost $33.185, or 1.43%, and ended the week at $2294.015.

China’s Impact on Gold Prices

The actual buying of Gold Prices Forecast by central banks, mainly China, was behind the long-term growth. In May, however, (the price) came to a halt, and thus, it raised the concern whether the central banks were still purchasing, had stopped, or had taken profits. In contrast to the leading investors, central banks keep the market in suspense about their future actions by going undercover. Because of this uncertainty, the market’s volatility has reached new heights as long-term optimistic investors become short-term traders.

U.S. Labor Market Strength

Gold prices soared in recent months because of the intensity of gold buying by central banks, including China. Nevertheless, the rise in prices came to a halt in May, so people asked if central banks were still buying, had paused, or were just plane rides away. However, unlike significant investors, central banks stay under the market’s radar about their intentions. This vagueness results from the market’s increased volatility, caused by former bullish investors becoming short-term speculators.

Market Reactions and Forecast

Market Reactions and Forecast

After Friday’s strong U.S. jobs report, which lessened the chances of interest rate cuts this year, gold’s drop has become more rapid. The Gold Prices Forecast decreased almost 1% for three consecutive weeks. Foreign gold buyers saw a price increase due to the strong dollar prompted by the upbeat economic data. Traders switched their bets, with the first-rate cut now expected in November instead of September and a decrease from 48 basis points (bps) before the NFP report to 37 bps by December.

China’s Influence on Central Banks

China’s decision to refrain from gold purchases after 18 months will be weighty. The Herd Theory says that other central banks will likely be affected by this behavior. The price of gold could become even more crowded if China begins to sell instead of purchase. Traders are cautious on charts to spot any signs of this alteration before the news spreads.

Market Forecast Bearish Outlook

The short-term outlook for gold remains clouded owing to the solid U.S. employment market and the interruption of China’s gold purchases. The drop in gold prices is inevitable due to the Federal Reserve’s firmness in maintaining high interest rates to curb inflation and the reduced likelihood of rate cuts in the near future. All these developments will gradually become the norm in the market, so traders will have to be ready for more falls.

FAQs

Why did gold prices drop recently?

Gold prices dropped due to strong U.S. labor market data, which suggested interest rates would remain high, and China paused its gold purchases.

How has China’s behavior affected gold prices?

China’s decision to halt gold purchases for the first time in 18 months has raised concerns about the future of gold demand and contributed to price depreciation.

What is the impact of U.S. labor market strength on gold?

The robust U.S. labor market has led to expectations of higher interest rates for longer, putting downward pressure on gold prices.

What is the market forecast for gold in the short term?

The short-term outlook for gold is bearish, with prices expected to continue falling due to strong U.S. employment data and China’s lack of gold buying.

 

How will central banks' actions influence gold prices?

Central banks, especially China, significantly influence gold prices; their shift from buying to selling or pausing purchases could lead to further price declines.

TAGGED:China’s Impact Gold PricesGold Faces PressureGold Prices Forecast
Share This Article
Facebook Twitter Copy Link Print
By Ali Raza
Follow:
Ali Raza is a contributing crypto writer for BTC Craze. He is a crypto and finance journalist with over Three years of experience. Ali Raza decided to pursue a career in the FinTech space. He started as a freelance technology writer but turned to crypto after getting acquainted with the industry in 2019. Ali Raza has been featured in several high-profile crypto and finance outlets, including Bitcoinzone.com, coinz4u.com, and more. He has also worked with some major crypto and DeFi Projects.
Previous Article Bitcoin Breaks $72K, Ether Rises on Dencun Upgrade Hopes Bitcoin Breaks $72K Ether Rises on Dencun Upgrade Hopes
Next Article OpenAI, Nvidia, and Microsoft Predicted Bearish AI Coins OpenAI Nvidia and Microsoft Predicted Bearish AI Coins
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Most Popular
Bitcoin's Growth & Investment
Bitcoin’s Growth & Investment: How Institutional Confidence
May 13, 2025
Solana meme coins
Dogwifhat (WIF) Surges 150%: What’s the Next SOL Meme Coin?
May 13, 2025
Freight Technologies Trump token investment
Freight Tech’s $20M Trump Token Bet Shocks Crypto & Wall Street
May 7, 2025
Bitcoin price amid geopolitical tensions
Bitcoin Price Jumps Amid India-Pakistan Tensions and $734M
May 7, 2025
TURBO crypto
TURBO Crypto Surge: AI Meme Coins and Market Predictions
May 5, 2025

You Might Also Like

Crypto Industry Votes and Donations Benefit Trump
Technology

Crypto Industry Votes and Donations Benefit Trump

7 Min Read
Elon Musk's X Payments Gets Another Money Transmitter License
Technology

Elon Musk’s X Payments Gets Another Money Transmitter License

4 Min Read
Token Sniffer: The Best Digital Asset Monitoring and Security Tool
Technology

Token Sniffer: The Best Digital Asset Monitoring and Security Tool

6 Min Read
Grayscale Bitcoin ETF Loses $121M With Falling Asset Price
Technology

Grayscale Bitcoin ETF Loses $121M With Falling Asset Price

4 Min Read

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Facebook X-twitter Medium Quora Youtube Pinterest
BTCCRZAE BTCCRZAE

BTCCraze, your ultimate destination for all things Bitcoin! We are dedicated to providing you with the latest bitcoin news, insightful analysis and many more.

Quick Links

  • About Us
  • Contact
  • Privacy Policy
  • Terms and Conditions
  • Advertise With Us
  • Disclaimer

Trending Posts

Bitcoin’s Growth & Investment: How Institutional Confidence
May 13, 2025
Dogwifhat (WIF) Surges 150%: What’s the Next SOL Meme Coin?
May 13, 2025
Freight Tech’s $20M Trump Token Bet Shocks Crypto & Wall Street
May 7, 2025
Welcome Back!

Sign in to your account

Lost your password?