Mr. Rich Checkan - Chairman and CEO of Asset Strategies International predicts gold prices will increase next week.
The adjustments of both gold and silver in the past week are excessive. In terms of fundamentals, there is no change for gold, only prices fluctuate. This is a typical case of profit-taking and accumulation activities. Therefore, this is an opportunity to buy at a good price in the context of rising market prices. Take advantage of this opportunity" - this expert said.
Agreeing with this view, Mr. James Stanley - senior market strategist at Forex. com also said that gold prices will increase next week. "The sharp decline at the beginning of the week was quite fierce, but the market reaction afterwards made me still lean towards an upward trend.
The 5,000 USD/ounce mark is still a barrier to spot prices and the market has not really accepted the price above this threshold, so caution is needed when chasing the upward momentum. However, I am still optimistic and looking for opportunities to increase positions when prices adjust.
Prices will be higher, assuming that most of the leverage reduction process in markets - especially cryptocurrencies and silver - has taken place" - Mr. Ole Hansen - Head of Commodity Strategy at Saxo Bank said.
Meanwhile, Mr. Adrian Day - Chairman of Adrian Day Asset Management also positively forecasts the short-term outlook for gold.
I expect prices to continue to fluctuate up and down in the next few weeks; that is normal after such a deep drop. However, the main trend is still upward, because the main drivers of gold are still there, and the recent sell-off has created opportunities for outside investors to participate in the market" - this expert said.
Mr. Michael Moor - founder of Moor Analytics, believes that gold prices will continue to rise next week.
Mr. Jesse Colombo - an independent precious metals analyst and founder of the BubbleBubble Report newsletter, said that the strong sell-off of precious metals last week was just a technical reaction after the explosive increase at the end of January.
According to Mr. Colombo, this development was predicted in advance. Previously, he warned that silver could peak at 121 USD/ounce when the price is still around 79 USD, based on the principle of measuring amplitude. When it reaches this level, he noted that the market has become too hot in the short term and there is a risk of correction, especially for leverage investors.
As predicted, just a few days later, the market fell sharply. With gold, Mr. Colombo's target was 5,200 USD/ounce, but the price exceeded this mark by about 400 USD before adjusting down nearly 1,000 USD. Despite large fluctuations, he affirmed that the market has not fallen into a negative scenario.
Prices will only return to the mid-January zone. Many people are worried that this is a peak, but I still believe that the precious metal is in a long-term upward cycle, which may last for another 7-8 years" - he said.
According to Mr. Colombo, the fundamental factors that once led gold prices to continuously hit historical peaks remain unchanged, and the recent decline mainly stemmed from technical and psychological factors. He also rejected the view that former US President Donald Trump's selection of personnel for the Fed was the main reason, saying that the adjustment was "pre-valued".
Currently, Mr. Colombo positively assesses the prospects of the entire group of precious metals, from gold, silver, platinum to mining stocks and ETF funds, as prices have fallen into a sell-off state and are recovering above important support zones.
He also noted that pessimistic and worried sentiment is spreading among individual investors, and considers this a signal of upward price from a reverse perspective. In the near future, he expects gold prices to close above the 5,000 USD/ounce mark on the Comex exchange, thereby strengthening market sentiment and opening up room for rebound.
