In the latest report, Shiels pointed out that she is more focused on the performance of gold priced in euros, considering it a reliable indicator of demand since this method excludes the effects of dollar fluctuations.
Although the U.S. gold futures market was closed during the Labor Day holiday, spot gold trading in other currencies continued. Euro-priced gold is currently around 2259.60 euros per ounce, in a neutral zone.
Shiels emphasized that euro-priced gold is facing critical resistance, which could lay the groundwork for broader market trends in the future. She believes that this price will respond to global market panic.
Shiels also mentioned that since March and April of this year, euro-priced gold has fluctuated within a range of 150 euros per ounce. After reaching a historical high of 2287 euros in April, gold has repeatedly tried to break through the 2270-2280 euros per ounce range but has not succeeded.
Although euro-priced gold has not broken through the highs of March and April this year, Shiels believes that gold is establishing a solid foundation around 2200 euros per ounce. She noted that even if prices consolidate in the short term, euro-priced gold still has upside potential. In this scenario, she advises investors to buy during price corrections.
Shiels believes that the top of gold is not yet in. As a representative of strong actual demand, euro-priced gold remains attractive, and the current market environment is insufficient to reverse its long-term upward trend. While there may be short-term tactical adjustments, she considers it premature to think that gold has topped at 2300 euros.
Recently, as the market prepares for a possible easing cycle by the Federal Reserve, the gold market has shown strong bullish sentiment. The market generally expects the Fed to cut interest rates by 25 basis points, and the likelihood of a 50 basis points cut is diminishing, pushing gold prices above $2500 per ounce.
Rising expectations of an aggressive rate cut policy have led to a significant devaluation of the dollar. However, many analysts note that the likelihood of a 50 basis points rate cut is still low, which may provide some short-term support for the dollar.
Meanwhile, euro-priced gold continues to be supported. With inflationary pressures gradually easing, the market expects the European Central Bank to cut interest rates again in September.
