Colin Cieszynski - chief market strategist at SIA Wealth Management - said he maintained a neutral stance on gold this week. "Technically, after a sharp rally, gold prices are showing signs of accumulating around the 5,000 USD/ounce mark" - he said.
Talking to Kitco News, John Weyer - Director of Trading Risk Prevention at Walsh Trading - said that the developments in gold prices after the US Supreme Court's ruling related to tariffs show that this precious metal still has many upward momentum.
According to Weyer, gold fell sharply immediately after the information was announced, but optimistic sentiment quickly returned. "The market reacted according to news headlines, then returned to the main trend. Many investors still maintain buy-in strategies when prices rise," he said.
He also emphasized that uncertainty still dominates the market. "Many businesses have prepared plans to cope with maintaining tariffs, and now have to readjust long-term strategies. Real impact may come later" - Weyer said.
Assessing the trend, this expert believes that gold is being supported by the market's own upward momentum. "In the past six months, many investors have participated just because prices are rising. This is almost an auto-consolidation loop - the upward trend continues as cash flow continues to pour in" - he analyzed.
Meanwhile, analysts at CPM Group have issued a buy recommendation, with an initial price target of 5,400 USD/ounce in the period from February 23 to March 6 and a cut-loss level at 4,850 USD/ounce.
Gold price fluctuations are forecast to continue in the context of economic and political instability" - CPM Group said. This group believes that gold prices are still likely to experience sudden declines, but the main trend is assessed to lean towards the possibility of increase next week as well as in the medium term.
According to CPM Group, the initial target of the trading recommendation is 5,225 USD/ounce, but the possibility of a surge to 5,400 USD/ounce or higher is not ruled out. "Gold prices may rise rapidly to 5,500 USD in a short time if triggering factors from the economy or politics appear" - the report stated.
However, the organization also warned of the risk of a downward correction. "In the short term, prices may fall to the 4,800 USD/ounce range, or even lower in the coming quarters, depending on macroeconomic developments" - CPM Group noted.
In general, analysts believe that gold is still being supported by risk hedging sentiment and investment cash flow, but investors need to be cautious about strong fluctuations that may occur in the near future.
