Gold Prices Set to Drop Below $4,000 Amid Higher Oil Prices

Petri Redelinghuys of Herenya Capital Advisors is warning investors to prepare for gold prices to drop below $4,000 per ounce. In a recent interview with Moneyweb, he stated that his target range for gold is between R4,000 and R4,050 per ounce.

This prediction is based on a head-and-shoulders pattern in the gold price, which indicates a potential breakdown through the $3,950 level. If this happens, it could lead to lower prices and potentially even a new low for gold.

Redelinghuys also noted that the current trend in gold prices is down, with the 200-day moving average having been broken and the 50-day moving average being below it. Additionally, gold has made a lower high, which further supports his bearish view on gold.

However, he also mentioned that there are other factors at play, such as the relationship between risk and gold prices. When risk increases, gold prices tend to decrease, and vice versa. The current situation with higher oil prices and increased rate-hike bets is driving down gold prices.