Some Wall Street experts believe that gold may be under downward correction pressure in the short term, while others believe that this precious metal is entering a sideways phase with a large amplitude and it is very difficult to predict the trend.
One of the most pessimistic opinions comes from Darin Newsom, senior market analyst at Barchart. com. He believes that in the short term, the June gold futures contract is approaching the peak zone, meaning that a downward momentum may begin to form.
Although he also appears cautious about the technical analysis tools themselves, the main view is still that gold is facing the risk of weakening in the short term. From this perspective, gold prices this week may be under adjustment pressure if buying power is not strong enough to maintain the recovery momentum.
Another downward forecast comes from Michael Moor - founder of Moor Analytics. He believes that gold prices tend to decrease, unless the market breaks through some technical patterns in a lower timeframe.
According to him, gold may be in a downward correction after the previous upward period, with the minimum goal of possibly retreating to a lower zone if selling pressure increases.
This is a rather technical perspective, but clearly reflects the caution that gold prices this week may not be able to maintain a sustainable upward trend.
Meanwhile, Colin Cieszynski - chief market strategist at SIA Wealth Management, does not completely lean towards a deep decline scenario but believes that gold has now shifted from an upward trend to a sideways one.
According to him, after increasing too strongly for many months, it is understandable that gold enters a correction and accumulation phase. He believes that gold prices are currently fluctuating in a wide range, from 4,400 to 5,200 USD/ounce, and in an environment where war events or political statements can reverse the market very quickly, predicting a major direction in the short term is almost impossible.
That means that gold this week may continue to fluctuate strongly, but there is not enough solid basis to confirm a clear upward trend.
It can be seen that, although the market is not completely pessimistic about gold, the cautious opinion group is noting that this week may be a period when gold is under adjustment pressure or at least continues to move sideways in a wide range.
For investors, this may be the time to closely monitor new signals from geopolitics, inflation and market cash flow, instead of rushing to bet on a strong upward trend immediately.
