Mr. Adrian Day - Chairman of Adrian Day Asset Management, said that gold prices this week will increase. "We have seen a bottom correction. There may be more tug-of-war when approaching the 5,500 USD/ounce mark, but the next major trend is upward, with two large and almost not too sensitive buying forces - global central banks and Tether are likely to still maintain steady buying.
Mr. Jim Wyckoff - senior analyst at Kitco, said that rising US-Iran tensions are driving demand for safe haven.
The next upside target for gold contract buyers for April delivery is to close above the strong resistance level of 5,400 USD/ounce. The short-term downside target for sellers is to pull prices below the important technical support level of 4,854.2 USD/ounce.
The nearest resistance is this week's peak of 5,269.40 USD, followed by 5,300 USD/ounce. The nearest support is this week's bottom of 5,109.5 USD/ounce, then 5,100 USD/ounce".
Mr. Kevin Grady - Chairman of Phoenix Futures and Options, told Kitco News that he only saw "green light" for gold this week and beyond.
I think the current developments are positive" - Mr. Grady said about the recent rise of gold - including corrections. "The market cannot go straight up forever. The best way to test the strength of a market is to sell it out, and gold has been under pressure. We have lost 150,000 open positions since January 3rd. Last week the market started to recover, but the position level is still not too high. Therefore, I think the market's correction is constructive.
I still like gold. I still like silver. I don't see the reasons for the previous price increase change, so I still maintain a positive view" - he added.
According to Mr. Grady, supporting factors and drivers driving the market in recent years continue to exist. “You can look at any situation and interpret it in a negative direction, for example, if the US attacks Iran, it would be a disaster...
But on the contrary, it can also solve a big problem that has existed for a long time and will sooner or later have to be addressed. In that way, it is a positive factor".
Mr. Grady believes that gold does not need to "take a break" and predicts that the market will consider the 5,200 USD/ounce mark as it has reacted to the 5,100 USD/ounce mark - that is, becoming a launching pad for the next upward momentum.
Looking at open positions, I think the market will test higher levels. All factors are ready. The market is trading positively. Buy positions are still there. Weak investors have left. Long-term holders are still staying and not retreating. They hold physical gold and will continue to stay. The story has not changed. Therefore, I think prices will increase further this week," he said.
Weekly economic data to track
PMI manufacturing index ISM
ADP, PMI services ISM non-farm payroll
Number of weekly jobless claims in the US
US non-farm payrolls, US retail sales
