Analysts Predict Gold Rally Amid Rising Recession Fears

On Friday, August 2, gold (XAU/USD) hit $2,477 per ounce, nearing its previous high of $2,483 from July 17.

This movement is attributed to rising recession concerns in the U.S., prompting analysts to adopt a positive stance on gold.

New economic data showed that job growth in July was only 114,000, well below expectations, with the unemployment rate climbing to 4.3%, the highest since October 2021. These figures have intensified fears of an economic slowdown.

Gold, typically a safe haven during economic uncertainty, experienced a sell-off following the news. However, experts believe this dip is a temporary reaction and that gold is on the verge of breaking its all-time high.

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By the close of trading on Friday, gold stood at $2,442, a 3.78% gain from its low on July 25. The retracement to $2,353 respected the 50-day moving average, indicating potential for a rebound.

The Kitco News Weekly Gold Survey reflects a bullish sentiment among both retail investors and analysts. Prominent figures like Adrian Day, Marc Chandler, Michele Schneider, Bob Haberkorn, Christopher Vecchio, James Stanley, and Adam Button shared their insights. They generally agree that gold is poised for further gains, although Adam Button advises caution in the short term.

Survey results show that 79% of Wall Street analysts and 73% of Main Street investors expect gold prices to increase next week. Factors such as recession fears, a weakening U.S. economy, and geopolitical tensions are seen as driving forces behind gold’s potential rise. The market will keep an eye on upcoming economic reports and Treasury auctions for further guidance.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.