It is still early for rate cuts

For over six years, gold prices have been unable to decisively break and stay above the $1360 per ounce price level. One of the reasons may have been a strong US dollar. And analysts say that gold prices will rally only when investors realize there are no rate cuts on the horizon, at least in the short term.

US growth have picked up in the recent past, but it slowed down afterwards. Investors believe this will prompt the Federal Reserve to decrease rates to stimulate fast growth. But analysts disagree and say that a rate cut is not due yet, and that investors are rushing with their predictions. Until investors realize that rate cuts are not coming in the near term, gold will remain moving sideways.

Gold is moving sideways, with a bullish tendency

Future markets show that there is a 25 percent chance of a rate cut to be decided by the Fed this week. And some analysts believe that this is preventing Gold from appreciating in value. Future predictions vary between an average of $1280 per ounce by the end of the first half, and $1340 at the end of the year.

Based on the fundamental analysists, many activities can boost gold price, including depreciation in the US dollar, and gold purchases by central banks. Technical analysis, on the other hand, shows that a resistance zone at around $1360-1375 needs to be broken before we can see a strong bullish move in gold.