"Normal adjustment"
Rich Checkan, president and COO of Asset Strategies International, believes gold prices will increase again.
Although gold prices have fallen sharply this week, the sell-off in both gold and silver to make a profit, although healthy, has gone too far. Expect gold to return strongly next week as it builds support zone towards the $3,000/ounce mark, Checkan said.
Everett Millman, an expert at Gainesville Coins, was not concerned about gold's decline, saying that this was just a normal correction after prices rose too quickly. He said that capital flows are temporarily leaving the market due to economic and political instability, but the outlook for gold above $3,000/ounce is still very promising.
Millman believes that every time gold breaks new highs (2,700 USD/ounce, 2,800 USD/ounce, 2,900 USD/ounce), these levels gradually become supportive. Upward momentum remains strong as a major bank on Wall Street forecasts gold prices to surpass $3,000/ounce this year. Inflation continues to push up commodity prices, creating favorable conditions for gold.
In terms of geopolitics, Millman assessed that the impact of the Donald Trump administration on Ukraine and Gaza could have a complex impact on gold. He said that even with a peaceful deal, gold prices could still maintain their upward momentum if these deals were not widely supported, continuing to increase concerns about instability.
Profit-taking time will be extended
Adrian Day - chairman of Adrian Day Asset Management, commented that gold prices will continue to decrease. There is no reason to think that this profit-taking correction will not last for a while longer. But we need to remember that so far, gold has only fallen less than 4% from its peak, after rising 12% this year, he said.
This expert warned that when the gap between New York and London gold prices disappears, gold prices may continue to decline. However, the underlying factors driving gold demand over the past two years have remained intact, so any deep decline that could fall to a low of $2,600/ounce is short-lived.
Marc Chandler - CEO of Bannockburn Global Forex, predicted that gold will continue to correct in the short term. He said gold hit a record $2,956 an ounce on February 24 before falling under profit-taking pressure and is now trending like a risky asset rather than a safe haven.
Chandler said gold is set to close below the 20-day moving average, with initial support around $2,814/ounce, if it breaks through, it could fall to $2,770/ounce. He recommends that traders be cautious when catching the bottom until there is a clear reversal signal.
Marc Chandler - CEO of Bannockburn Global Forex, predicted that gold will continue to adjust down in the short term. He said gold hit a record $2,956 an ounce on February 24 before falling under profit-taking pressure and is now trending like a risky asset rather than a safe haven.
Chandler said gold is set to close below the 20-day moving average, with initial support around $2,814/ounce, if it breaks through, it could fall to $2,770/ounce. He recommends that traders be cautious when catching the bottom until there is a clear reversal signal.
Adam Button, head of currency strategy at Forexlive.com, said gold could continue to fall next week.
The market will monitor the likelihood of fiscal stimulus at the National People's Congress session in China next week. With improved growth prospects, Chinese investors are shifting from gold to stocks, he said.
Jim Wyckoff, senior analyst at Kitco, shared the same view, predicting that gold prices will continue to decline in the short term.
Gold is falling steadily. The technical signals in the short term have been damaged, Wyckoff said.
Wyckoff also reiterated a long-standing trading principle that bull markets need to be regularly provided with new positive news to maintain upward momentum. However, recently, gold has not had much new supporting information.
However, he still believes that macro factors such as trade tensions between the US and China will continue to hold the floor for gold prices.
Mark Leibovit - publishing expert of VR Metals/Resource Letter, commented that the gold and silver markets may move sideways in the coming time.
