Mr. Naeem Aslam - Investment Director at Zaye Capital Markets - said that although it cannot rule out the possibility that gold prices will continue to fall in the short term, he still sees the corrections as an opportunity to buy in. He added that inflation risk continues to increase, thereby strengthening the role of gold as a hedging tool against weakening purchasing power.
He said: "We have begun to hear from retailers that they are under pressure, and if the war continues, prices will rise. Inflation is really right at the door and is knocking very hard on the door.
Agreeing with this view, Mr. Rich Checkan - Chairman and Chief Operating Officer of Asset Strategies International - said. “From Wednesday to now, we are seeing signals showing that the excessive correction is gradually bottoming out. Investors are waiting for a boost before returning to buying. I think they will see this as a signal to act in that direction.”
Meanwhile, Mr. James Stanley - senior market strategist at Forex. com - said that short-term gold prices will increase: "Market response at the end of the week is a positive signal for buyers. With still a few hours before closing, the weekly chart still has the potential to form a hammer candlestick pattern.
Considering the current macroeconomic context, I do not see any reason to give up the view of price increases, although the recent adjustment took place on a fairly wide range. I still see this as an opportunity in the larger picture of the market.
Meanwhile, Mr. Adrian Day - Chairman of Adrian Day Asset Management, commented: "I think the price will still fluctuate, but the trend is in the upside. I am still cautious when calling this the bottom, but the closing level on Thursday, just above the threshold of 4,350 USD, may be the bottom. This level has not completely reached my downward target, but it is also very close.
If the conflict with Iran cools down, monetary factors will return to dominate the market. Although central banks around the world are committed to combating inflation, when economic data weakens, that determination will be challenged," Mr. Day added.
Economic data to be tracked next week
Fed Chairman Jerome Powell attends a coordinated discussion at Harvard University.
US JOLTS vacancy data, US consumer confidence index.
ADP Private Sector Employment Report, US Retail Sales, ISM Manufacturing PMI.
Number of weekly jobless claims in the US.
US non-farm payroll report.
