Gold price forecast short term remains bullish as ETF inflows continue for the third consecutive week. Institutional buying is sustaining momentum, with COMEX futures open interest rising 3.4%. A breach above $2,350 could open the way for $2, This highly dovish outlook has weighed on the greenback, with the U.S. dollar index (DXY) continuing to trade not far from its multi-year lows. In addition, the political gridlock in Congress has introduced an additional layer of uncertainty. ‘Government shutdown threatens to delay the release of key economic data, such as the Nonfarm Payrolls report’ , notes Kar Yong Ang, adding that the data vacuum hinders the Fed’s ability to assess the economy, increasing market anxiety and driving capital into non-yielding gold. ‘Precious metals look very attractive not only because a weaker dollar naturally boosts the purchasing power of overseas buyers of dollar-denominated assets, including gold and silver, but also because the environment of declining real yields significantly lowers the opportunity cost of holding these non-interest-bearing metals’, concludes Kar Yong Ang. “I think we’ll see new highs in the next 12 months and I think we will recast the highs in the next six months. Recasting meaning US$50 in the next six, and then breaking out to new highs in the next 12 months,” he said. Gold price forecast short term behavior is closely tied to Fed rate cut bets. Probability of a September cut rose to 68%, supporting gold’s rally. Spot price reaction to upcoming PCE inflation print will define short-term entry and exit points.