Gold prices saw a notable rise, driven by a slowdown in the U.S. labor market that contributed to a weaker dollar and a decline in Treasury yields. This environment has boosted gold’s appeal, pushing its prices higher in Friday’s Asian trading.
Spot gold rose 0.3% while futures climbed 0.9%, paving the way for gold to potentially end its recent three-week correction on a positive note.
Analysts see bullish future with $3,000 target
The long-term outlook for gold remains strongly bullish, with market analysts and technical charts suggesting an eventual rise to the $3,000 mark.
The formation of an ascending and widening wedge pattern from the 2016 low of $1,045.40, along with an inverse head and shoulders formation seen from 2020 to 2023, highlights a persistent uptrend .
These technical patterns, combined with a breakout of the long-term pivot and neckline at $2,075, reinforce bullish sentiment, indicating that minor seasonal corrections may be overlooked as gold’s rally continues.
Geopolitical tensions highlight the appeal of gold as a safe haven
Ongoing geopolitical conflicts, particularly in the Middle East, have played a significant role in increasing the demand for gold.
As tensions escalate, more investors are turning to gold as a safe haven, supporting rising prices.
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The recent breakout of the $2,075 level, now considered strong support in the event of a correction, highlights the metal’s appeal during times of global instability.
This article appeared first on Invezz.com France
