Gold rallied after falling back to test key support, institutions remain bullish at 2200.

Gold prices hit a new high for the second day in a row on Monday (December 4), the spot price broke through the 2100 mark, the highest hit 2144.68 US dollars/ounce, although soon after giving up most of the gains, but the technical and institutional seems to be positive bullish on the gold market, the global pursuit of gold seems to continue. On Monday, the Asian market late, spot gold is currently back below $2080/ounce.

Analysts say gold prices will hit a new high next year and could stay above $2,000 due to geopolitical uncertainty, a possible weakening of the dollar, and a possible interest rate cut.

Gold, which has risen for two straight months as the Israeli-Palestinian conflict boosts demand for the safe-haven asset and provides further support to expectations of a US Federal Reserve rate cut, tends to perform well in times of economic and geopolitical uncertainty because it is a reliable store of value.

The technical aspect depends on the 2075 test results

Gold prices broke through the previous all-time high of $2079/oz and set a new record high of $2144.60/oz. However, gold prices quickly retreated and traded around $2079/oz, and the 2075-2079 area is expected to constitute key support. Watch the test of this support area at the 4-hour level.

The expected trend for gold prices today is bullish, with intraday trading focusing on the 2070 to 2110 range.

As long as we stay above this key support area 2075-2079, gold prices are still expected to return to bullish tendencies and test $2100.00/ounce first, and the next bullish target will focus on $2,135/ounce.

The 50 moving average on the 4-hour chart constitutes support. The above optimistic forecast is based on holding support. Conversely, if the price of gold falls below $2,075/oz, this will stop the expected rise and drive some bearish correction in the price of gold during the day.

In the medium term, institutions are optimistic about gold reaching 2200.

Gold prices will break through $2,100 and will reach $2,200 an ounce, said Nicky Shiels, head of metals strategy at precious metals firm MKS PAMP. Compared to 2011, gold is less leveraged this time around.

Heng Koon How, head of global economic and market research market strategy at UOB, estimates that gold could reach as high as $2,200 by the end of 2024. He said the expected pullback in the dollar and interest rates in 2024 is a key positive driver for gold.

A recent survey by the World Gold Council revealed that 24% of central banks plan to increase their gold reserves over the next 12 months as they become increasingly pessimistic about the prospects for the dollar as a reserve asset.

Bart Melek, head of commodity strategy at TD Securities, expects gold prices to average $2,100 by the second quarter of 2024, and strong central bank buying will be a key catalyst to push prices higher.

This means that official sector demand is likely to increase in the coming years. It is also possible that the Federal Reserve may adjust its policy focus in 2024. Lower interest rates tend to weaken the dollar, and a weaker dollar makes gold cheaper for international buyers, boosting demand.

At 14:56 Beijing time, spot gold was quoted at 2076.59 dollars per ounce.