On Monday, there was a notable decline in gold prices, which led to a red market and a drop to $2,022. This steep decrease totaled almost 24 points, indicating a 1.5% reduction in the indices. Gold prices could go below the $2,000 mark in January 2024 if the trend in the commodity markets continues, which could result in lower prices in February of that year.
Given that the price of gold has dropped by almost 20 percent, it is unclear if the precious metal would climb again in February 2024. The purpose of this article is to project the price of gold for that particular month.
Leading on-chain metrics and price prediction company Gov Capital has predicted that on February 1, 2024, the average moving price of gold may reach $2,071. From its present price of $2,022, this indicates a rise of almost 2.5%.
According to the prediction, if market conditions become turbulent, gold might drop to about $1,760. But a significant market decline is required before the market can fall to its worst-case level. On the other hand, gold might hit a top price of $2,382 if the commodity and gold markets rebound. From its present price of $2,022, this potential spike translates into a return on investment (ROI) and a gain of about 18%.
Gold had a good start to 2024, almost reaching $2,100 in the first few days of January. But after that, prices started to fall, which sparked worries about a potential plunge below the $2,000 threshold. This month’s volatility in the price of yellow metal is correlated with higher returns on US Treasury yields.
Increased yields on US Treasury bonds have an effect on the gold and stock markets. The US stock market had a downturn last week as a result of a steep slide in Apple Inc.’s shares brought on by higher Treasury yields.
