Gold Price Forecast 2024

• The price of gold rose to around $2,065 during Tuesday’s early Asian session.The increase in the value of the yellow metal is supported by the weaker US Dollar (USD) and positive developments surrounding China’s economic stimulus measures. Currently, the price of gold is trading at around $2,065, which is up 0.19% on the day.
• The US Chicago Purchasing Managers’ Index (PMI) for December was 46.9, lower than the previous reading of 55.8 and worse than expected.
• The Chinese Communist Party Chairman, Xi Jinping, made ambiguous comments regarding economic support.
• The US S&P Global Manufacturing PMI is scheduled for release on Tuesday.
• The price of gold (XAU/USD) started the first trading day of 2024 positively during the early Asian session on Tuesday. The increase in the value of the yellow metal is supported by the weaker US Dollar (USD) and positive developments surrounding China’s economic stimulus measures. Currently, the price of gold is trading at around $2,065, which is up 0.19% on the day.

The US economy potentially entering a recession and potential rate cuts from the Federal Reserve (Fed) are factors that weigh on the Greenback and lift USD-denominated commodities. The December jobs data, including US Nonfarm Payrolls (NFP), will be closely watched by investors. The NFP figure is expected to show an increase of 163K in December, compared to 199K in November. The estimated Unemployment Rate is expected to increase to 3.8%, while December’s Average Hourly Earnings are forecasted to grow by 0.3% MoM. If the report indicates weaker-than-expected data, it could exert selling pressure on the Greenback.

On Friday, the US Chicago Purchasing Managers’ Index (PMI) for December dropped to 46.9 from the previous reading of 55.8, which was worse than the market expectation of 51.0.

On Sunday, the Chairman of the Chinese Communist Party, Xi Jinping, made comments about supporting the economy. Jinping stated that the government will consolidate and enhance the positive trend of economic recovery and achieve stable and long-term economic growth. He added that the authorities must deepen reform, improve confidence in growth, and make more efforts to promote education, science, and technology and cultivate talents.

Gold traders will monitor the US S&P Global Manufacturing PMI, scheduled for release later on Tuesday. The Federal Open Market Committee (FOMC) minutes, due later this week, will also be closely watched ahead of the US Nonfarm Payrolls (NFP) report on Friday. Traders will use this data to identify trading opportunities related to the gold price.