Gold prices are forecast to continue to fluctuate strongly in a wide range this week, as many experts believe that the market currently does not have enough signals to establish a sustainable up or down trend.
In the context of constantly changing geopolitical information, along with market liquidity decreasing due to the impact of the holiday, gold is likely to still fluctuate strongly in the short term.
Mr. Darin Newsom - senior market analyst at Barchart. com - said that gold prices are currently in a sideways state, with a very wide fluctuation range from 4,128.5 - 5,666.6 USD/ounce.
According to him, the amplitude of up to about 1,500 USD/ounce shows that even analysts have many difficulties in making solid forecasts about the next direction of this precious metal.
He also emphasized that the market is currently heavily dependent on new statements and moves from the US President on social media - factors that could cause gold prices to reverse unexpectedly in a very short time.
Sharing the same cautious view, CPM Group analysts recommend that investors should temporarily stand aside and observe until April 17, in the context that gold prices may trade in the range of 4,100 - 4,850 USD/ounce.
According to this analysis group, although there are still many grounds to expect gold prices to increase in the coming weeks and months, the financial market is currently facing a very high level of uncertainty and volatility, making buying at this time more risky.
CPM Group said gold prices fell to $4,580.4/ounce in Thursday's morning session, after the group previously offered a buy recommendation at $4,712.6/ounce. However, the cut-loss level of $4,625/ounce was broken, forcing them to switch to a "stand by" recommendation.
According to the assessment of this group, in the context of unstable markets, waiting to observe how much more gold prices can decrease before returning to buying is a more reasonable choice.
Notably, CPM Group believes that the recent developments in gold and precious metals prices show that the market is reacting very sensitively to political signals as well as statements from US leaders.
Despite times when risks are said to cool down, gold prices have not yet formed a clear upward trend, while the stock market is also fluctuating strongly. This reflects that investor sentiment is still quite cautious and not ready to make big bets on a specific trend.
In general, many Wall Street experts believe that gold is in a period of lack of clear direction, with a high possibility of continuing to fluctuate strongly in a wide range.
In the context of the market being intertwinedly affected by technical, psychological and geopolitical factors, the main trend of gold prices this week is likely still struggling, instead of breaking through in a clear direction.
