Gold prices soar but investors are not in a hurry to take profits

The threat of an outbreak of geopolitical tension once again makes investors "sleepless" and hold gold tightly in their hands. As the market prepares to face the risk of escalation in the Middle East, gold prices have rebounded to surpass the 5,200 USD/ounce mark before the end of last week. This development shows that investors are willing to pay higher prices to buy "insurance" instead of worrying about volatility when the market reopens at the beginning of the week.

Meanwhile, silver plays the role of a more volatile "brother" of gold. Silver prices are accumulating above 93 USD/ounce, maintaining momentum even though the upward momentum has somewhat cooled down.

Both precious metals closed the month near record highs, an impressive recovery compared to the beginning of February. At that time, a sharp correction pulled gold prices down sharply before buying power returned. Silver fluctuated even more strongly.

Currently, gold prices have increased by about 19% compared to the bottom of nearly 4,400 USD/ounce, while silver has increased by more than 45% from a low of about 64 USD/ounce. Despite the sell-offs and strong fluctuations at the beginning of the month, the long-term uptrend is still maintained.

Bank of America believes that although gold prices have recently accumulated below the $5,200/ounce mark, this precious metal may still reach $6,000/ounce.

MKS PAMP Group believes that the current market price increase is only in the middle of the cycle and may reach 6,750 USD/ounce as the US political context heats up. In other words, the upward momentum may be temporarily "taking momentum", but the race is not over.

However, prices cannot increase forever in a straight line. After the recent record increase, many experts believe that the market needs more time to accumulate to strengthen its foundation. Markets that increase too quickly often have a risk of strong correction.

Even those who are optimistic about gold admit that "rest" periods will help the trend become more sustainable. With silver - which is sensitive to volatile industrial demand - it may remain large if economic growth prospects change according to information on tariffs and global trade.

In the near future, a factor that may put pressure is US monetary policy. A report by the US Department of Labor shows that wholesale inflation in the past 12 months increased by 2.9%, higher than forecasting 2.6%.

Prolonged inflationary pressure may cause the US Federal Reserve (Fed) to maintain its neutral policy longer than expected, thereby somewhat reducing the momentum to increase gold prices if interest rate cut expectations are pushed back.

However, currently the precious metals market is still supported by the reality: Instability is still high, public debt continues to increase and policymakers have to deal with increasingly complex geopolitical issues. In that context, investors do not abandon gold and silver, but take advantage of buying more when prices adjust.

The debate now is no longer about whether gold and silver should appear in the investment portfolio or not, but about how much to hold to hedge against risks when the world is volatile. And the latest price movements show that many people choose to keep a little more "safety" - in case an unexpected occurrence occurs again before Monday morning.