Gold extends gains as Powell’s speech boosts market optimism

The price of gold has been on a steady rise, surpassing all expectations and hitting record highs. Experts are predicting further increases in the gold price, with some even suggesting that it could reach $4,000 per ounce by the end of the year. Hassan Fawaz, Chairman of GivTrade, is one of those experts who have a bullish outlook on the precious metal. In a recent interview with CNBC Africa, Fawaz discussed the various factors driving the surge in gold prices and shared his insights on the future of the market. Fawaz highlighted the numerous supportive factors for gold, including economic uncertainty, potential interest rate cuts by the Federal Reserve, trade tensions, and geopolitical risks in the Middle East. These factors have created a favorable environment for gold as investors seek safe-haven assets amid the volatile market conditions. One of the key drivers of the rising demand for gold is the shift by central banks from US treasuries to gold. Many central banks, especially those in emerging markets, are increasing their gold reserves as a hedge against economic instability and currency fluctuations. This trend has further fueled the upward momentum in gold prices. On the supply side, Fawaz pointed out that the supply of physical gold is lagging behind the growing demand, leading to a potential shortage of the metal. Despite the high gold prices, mining companies are facing challenges in ramping up production, which could further exacerbate the supply-demand imbalance. In terms of price targets, Fawaz predicted a lower bound of $2,800 per ounce for gold, citing potential risks such as unexpected policy changes or geopolitical developments that could impact the market. However, he emphasized that the bullish trend for gold is likely to continue in the near term, driven by a combination of factors. The Federal Reserve's stance on interest rates and inflation, as well as global economic conditions, will play a crucial role in shaping the future trajectory of gold prices. Fawaz expressed confidence in the market's outlook and advised clients to consider gold as a key investment in their portfolios. As the year progresses, all eyes will be on the gold market to see if Fawaz's bold prediction of $4,000 per ounce by the end of the year will come to fruition. With continued economic uncertainty and strong demand for gold, the precious metal is expected to remain a top choice for investors seeking stability in an unpredictable market.