Momentum indicators are improving
World gold prices are likely to recover as many Wall Street experts make positive forecasts, although the market has just experienced a week of strong fluctuations due to the impact of monetary policy and geopolitical factors.
Mr. Rich Checkan - Chairman and Chief Operating Officer of Asset Strategies International said that the market is entering a stage where there may be a rebound after the sell-off related to the meeting of the US Federal Reserve (Fed).
According to him, gold and silver may record moderate increases in the short term as tensions in the Middle East have not yet been resolved, thereby maintaining safe-haven demand. However, he also noted that a strong and sustainable increase could only occur when the conflict between the US/Israel and Iran is clearly resolved.
From a trend perspective, Mr. James Stanley - Senior Market Strategist at Forex. com said that gold prices are likely to continue to rise next week. He believes that April is a period when the market lacks a clear direction, but buyers still maintain a fairly good position.
Considering the overall factors, the buying side is standing firm" - he said, while suggesting that the upward trend should still be prioritized until clearer reversal signals appear.
Meanwhile, Mr. Darin Newsom - senior analyst at Barchart. com continues to bet on the possibility of price increases for the June gold contract. He said momentum indicators are improving, reflecting market sentiment that is more positive than last week.
Notably, he emphasized that the fundamental factors remained almost unchanged as central banks continued to increase gold reserves, thereby creating important support for the precious metals market.
Gold prices may quickly approach the 5,000 USD/ounce mark
Mr. Daniel Pavilonis - senior commodity broker at RJO Futures believes that the upward trend of gold may be maintained in the context that the financial market is shifting to a "risk-seeking" state.
According to him, positive business results are supporting investor sentiment, while gold prices have formed a V-shaped bottom pattern at the end of last month and are in the process of recovering.
Mr. Pavilonis said that this upward momentum could continue if oil prices do not fluctuate too strongly. In case oil cools down, gold will have more room to go up. However, he also noted that the market is still in a cautious state, as risk factors may change rapidly.
This expert believes that investors are gradually getting used to the "ceasefire" state in the Iranian conflict, and expects a solution to be achieved soon. If a positive scenario occurs, gold prices may quickly approach the 5,000 USD/ounce mark. Conversely, if the conflict lasts, pressure from oil prices and liquidity demand may create unpredictable fluctuations.
Sharing the same positive view, Mr. Michael Moor - founder of Moor Analytics predicts that gold prices may increase next week, but emphasized that the risk of correction will appear if short-term support zones are broken.
According to him, the market is currently operating in a complex technical structure, with alternating up-down signals, requiring investors to closely monitor important milestones.
In general, the fact that many experts are leaning towards an upward scenario shows that market sentiment is gradually stabilizing again after shocks from monetary policy and geopolitical fluctuations. However, the upward trend, if any, is likely to take place in rhythm, instead of a strong breakthrough immediately.
In the context of high global public debt, increased monetary risk and central banks continuing to accumulate gold, the precious metal still plays an important shelter role. This is seen as a long-term foundation to help gold prices maintain their attractiveness, especially when large cash flows show signs of returning to the market after corrections.
