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Gold Surges 24% in Three Months as Analysts Eye a Possible Rally Toward $4,700
Gold has recorded a strong rally over the past three months, gaining nearly 24% as global demand increases and investors seek safer assets. This impressive performance has prompted analysts to project further upside potential, with expectations that gold could reach new historical highs in the coming period.
Key Drivers Behind Gold’s Rally
1. Major technical breakout:
Gold recently broke out of a long-term consolidation zone, surpassing key resistance levels and signaling the start of a stronger bullish trend.
2. Expectations of Fed rate cuts:
Growing anticipation that the Federal Reserve will soon begin cutting interest rates has weakened the US dollar, naturally supporting gold demand.
3. Inflation risks and US debt concerns:
Rising government spending and a widening US fiscal deficit have renewed fears of inflation, pushing investors to hedge through safe-haven assets like gold.
4. Central bank buying:
Several central banks continue to increase their gold reserves as part of broader efforts to diversify away from the US dollar.
Could Gold Reach $4,700?
Strategists believe that gold has a realistic chance of extending its gains toward $4,700 per ounce in the medium to long term.
This potential is driven by a weakening dollar, a supportive monetary policy environment, and strong institutional demand.
What This Means for Traders
Gold remains one of the strongest hedging tools amid global uncertainty.
The bullish outlook is supported by solid fundamentals, making pullbacks attractive buying opportunities.
Monitoring key macroeconomic indicators such as inflation data and Fed policy will be essential.
