Benzinga - by Zaheer Anwari, Benzinga Contributor.
- The recent drop in gold prices is attributed to the strengthening of the US dollar, particularly after a 0.2% surge on Tuesday.
- In 2024, gold has seen a moderate gain of 4.5%, continuing the momentum from a 13% rise in 2023.
- Historical trends suggest the possibility of another extended bull run in gold, similar to the one from 2001 to 2011.
On March 8, a significant milestone was reached as gold hit a record peak of $2,195.15. Since then, the 1.88% decline brought price to a crucial support level at $2,146, which is the high of December 2023. The recent weakness limited to gold alone; Palladium, a key player in the precious metals market, also experienced a 4% drop on Tuesday.
For 2024 so far, gold has seen moderate gains, up by 4.5%, following a 13% rise in 2023. The current situation, with gold at a crucial support level, marks a decisive moment for the market. This period might give buyers a break to regroup and potentially propel the price above its current all-time peak around $2200.
Reflecting on historical patterns, the last major bull trend in gold lasted a decade, running from 2001 to 2011. Drawing parallels, current market conditions suggest the potential for another extended bull run. Recognizing and capitalizing on the early stages of such a trend could prove pivotal for investors.
After the closing bell on Tuesday, March 19, the stock closed at $2157.41, trading down by 0.12%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.
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