Analysts Revealed: Suitable Year-End Target for Gold!

Geopolitical tensions and uncertainty surrounding the US election have increased investor demand, pushing gold prices to a new high. Despite favorable conditions, rising Treasury yields and a stronger dollar could limit gold's sudden gains. However, gold continues to be a safe haven for investors amid global turmoil. According to analysts, the potential year-end target for gold is $2,800. However, profit-taking could slow down the upward momentum.

Gold is rising in the midst of political and economic uncertainty

Gold prices extended their extraordinary gains on Friday, fueled by increased geopolitical tensions and economic uncertainty. As a result, the yellow metal reached a new high on Monday. Investors are weighing the potential for further upward movement in gold, closely monitoring global developments, including the US presidential race and unrest in the Middle East. There is no resistance at all-time highs, so traders are focused on potential reversals caused by profit-taking.

Geopolitical tensions and central bank policies are supporting gold

The rise of gold is also supported by increasing geopolitical risks and the dovish stance of major central banks. In particular, expectations are that the Federal Reserve will cut interest rates in November. Investors are pricing the probability of such a move at 99%. Meanwhile, the European Central Bank (ECB) lowered interest rates by a quarter point last week, further enhancing the appeal of gold. Low interest rates increase the attractiveness of gold as an asset with no yield. It also becomes a preferred investment during economic and political turmoil.

The tensions in the Middle East are also affecting market sensitivity. On Sunday, when Israel prepared to target Hezbollah-linked financial operations, many explosions occurred in Beirut. As a result, hundreds of residents had to flee. In addition, the upcoming US presidential election is increasing uncertainty. Former President Donald Trump and Vice President Kamala Harris are running a tight race in key swing states.

### Economic data and rising yields may limit instant gains

Despite the bullish market, increasing Treasury yields and a strengthening US dollar may limit short-term gains. On Monday, the yield on the 10-year US Treasury bond rose to 4.11%, creating an attractive alternative for investors. The strengthening dollar, due to higher expectations of US interest rates, also created headwinds for gold. Last week, the dollar index gained 0.55% in value, while the euro and yen weakened against the dollar. This trend may reduce the upside potential for gold.

Gold price forecast: Cautious bull moves!

Market analyst James Hyerczyk evaluates the technical picture of gold. Some traders expect gold to encounter resistance as profit-taking begins, especially after the recent rally. According to analysts, an important technical level to watch is the 50-day moving average. Additionally, if it is surpassed, it may indicate a shift in the intermediate trend. What is even more critical is the violation of the $2,604.39 support level, which would indicate a reversal in the trend. Despite the possibility of a short-term correction, many people believe that gold buyers will wait for pullbacks to enter the market at better prices.

Looking ahead, global uncertainties and continued support for dovish central bank policies are likely. Market analysts see $2,800 as a reasonable year-end target. However, as investors lock in their profits, a sudden surge may be limited. Nevertheless, the overall environment remains favorable for gold. Additionally, short-term declines may present buying opportunities for traders expecting further gains as economic and geopolitical risks persist.

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