GCAP Anticipates Gold Prices Staying Above $5,000, Highlights US-Iran Tensions

GCAP Limited (GCAP GOLD) assesses the gold market situation, projecting prices to remain above $5,000 amid expectations of Federal Reserve interest rate reductions. The company highlights potential economic indicators like GDP and PCE, while geopolitical tensions between the US and Iran continue to create market uncertainty. Areerut Murachai, GCAP's lead analyst, noted that global investors are closely monitoring upcoming US economic data, including the Federal Reserve meeting report. Market predictions suggest potential interest rate cuts of up to 63 basis points in 2025, with a 50% chance of three reductions by year-end. Key market factors include slowing inflation, with January's Consumer Price Index showing a 2.4% decrease, signaling potential monetary policy relaxation. Geopolitical tensions between the US and Iran remain high, with additional US naval deployments adding complexity to the situation. The analysis recommends an investment strategy of 'waiting for dips to accumulate', with key support levels at $4,900 and $4,775. Resistance is identified at $5,100, with a potential test of $5,275 if that level is breached.