Spot gold prices declined by more than 2% due to a stronger US dollar and uncertainty surrounding the Federal Reserve's interest rate outlook.
Despite the current sell-off, analysts have a positive long-term outlook for gold, with a target price of USD 2,900 per ounce by September 2025. Investors are advised to consider buying gold when it dips towards USD 2,600 per ounce.
Factors such as anticipated US rate cuts, ongoing trade tensions, and central bank diversification strategies are expected to support gold demand as a hedge against economic uncertainties. The upcoming release of US economic data, including CPI, PPI, and retail sales, is anticipated to further impact the market.