Gold price steadies as traders focus on uncertain 2025 rate path
Gold has hit successive records this year and is set to close 2024 more than 25% higher.
The gold market has been uncharacteristically calm this year with the metal hovering either side of $1,300 for the better part of two months.
In a recent research note Edel Tully and Joni Teves, analysts at investment bank UBS, argued that the quiet on the gold market may be a good thing:
“Gold is not on the radar for many, and with broad expectations that prices will be range-bound this year, many investors are opting to stay out of this market,” UBS wrote. “That is probably gold’s biggest positive right now.”
The thinking being that too much attention from speculators and any big economic news would automatically be seen as a negative given current gold market sentiment.
Gold’s charts may be telling a different story however.
Tony Henfrey from technical research and investment blog InvesTRAC passed on this price graph to MINING.com showing gold is primed for a big move.
“This is an alert. The gold price has formed a triangle type pattern and is dropping out of it, plus the moving averages have converged with price. This type of action invariably precedes a sharp move.“
Source: InvesTRAC
