Gold prices increase for 9 consecutive weeks, experts warn cautiously

Last week, Neils Christensen - an analyst at Kitco News - warned investors to be cautious. The expert said that advice is still valid, even though the gold market ended last week with an increase of about 5%.

According to him, despite increasing during the week, gold is still aiming to close Friday's session with a 2% decrease. This is the sharpest decline since May, when prices fluctuated around $3,200 - $3,400/ounce, in response to market fluctuations caused by US President Donald Trump's declarations on trade tariffs.

"Gold's rally was held back as the precious metal closed a nine-week streak of gains - something that has only happened five times since the 1970s. The last time gold had a 9-week increase was from June to August 2020.

The gold market has never recorded 10 consecutive weeks of increase," he said.

When predicting what could happen in the next few weeks, Neils Christensen said this was also the right time to look back on the past.

Five years ago, gold prices surpassed $2,000 an ounce for the first time. After reaching a peak in early August, the market entered a clear downward trend. Prices first hit bottom in March 2021 at 1,677 USD, then continued to accumulate before testing the support zone around 1,600 USD at the end of October 2022.

Of course, as people say, the rest is history. Since November 2022, gold has regained momentum and entered a price increase cycle that has lasted for the past 3 years.

At the same time, many things have changed in the past 5 years - that is the reason why no one dares to confirm that this price increase is about to end, even though there may be a short-term adjustment period.

Last week, banks such as society society society, Bank of America and HSBC all raised their forecasts for 2026, saying that gold prices could reach 5,000 USD/ounce in the first half of the year. JPMorgan Jamie Dimon also commented that in the current context, gold could well reach 5,000 or even 10,000 USD/ounce.

"As we have mentioned many times during this prolonged rally, although gold is being judged as technically overbought, the fundamentals are still very solid.

Global debt is forecast to continue to increase, causing higher inflation and slower economic growth. At the same time, confidence in the US dollar continues to weaken, and gold remains the only liquid monetary asset left in the market," said Neils Christensen.

In addition, this expert commented on new risks appearing: "Slowing growth is putting pressure on the banking system when businesses have difficulty paying debts. Some experts warn that the US may be facing a new regional banking crisis.

The US Congress is also stuck in approving the new budget package, causing the economy to start to suffer. There are forecasts that this government shutdown could surpass the record of 35 days set in 2018.

There is no shortage of anxiety and instability in the global economy, and gold seems to have become a "lifeline" that many people seek. However, it should also be noted that rising prices can trigger profit-taking activities, causing temporary pressure on prices.

If history is a guideline, then the upcoming corrections - if there are any - will be short and not too profound".