Gold prices have experienced a week of strong fluctuations, but despite deep corrections and market sentiment sometimes becoming negative, many experts have not given up optimistic prospects for the precious metal.
Among them, Mark Leibovit - Jesse Colombo and Michael Moor are three names who both express positive views, although each person approaches the market from a different perspective.
The shortest but most decisive is Mr. Mark Leibovit, publisher of VR Metals/Resource Letter news, when affirming that he still "continues to maintain the view of price increases".
This statement shows that in the context of the market still being volatile due to US economic data, geopolitical fluctuations and cautious psychology before the Easter holiday, Mr. Leibovit still does not see any basis to reverse to a more pessimistic stance.
Sharing the same positive view, Mr. Jesse Colombo, an independent precious metals analyst and founder of BubbleBubble Report, said that the strong upward momentum of gold in Friday's session was actually not too surprising. According to him, the price range from 4,300 - 4,600 USD is an important support area that he has been monitoring before, because this is an area that has seen many peaks and troughs since October.
The fact that gold continues to hold in this zone, or at least still fluctuates in this zone, according to him, is a noteworthy sign. Therefore, the recent recovery is not an unusual phenomenon, but a response that is consistent with the technical structure that was formed before.
Mr. Colombo emphasized that if the price continues to stand firm above the above support zone, this will be a very positive signal and he wants to see gold increase strongly again from here, or at least have a clear rebound. According to his assessment, the long-term upward trend of gold has not been broken, because the 200-day moving average is still going up.
He also said that the recent sell-off was an excessive reaction, mainly stemming from the immediate impact of the war with Iran, rather than reflecting the end of the current upward trend.
Not only looking positively in the short term, Jesse Colombo also expressed strong confidence in the long-term outlook of the gold market. He said he completely disagrees with the view that the rally ends at the end of January and from here prices will only go down.
On the contrary, he believes that the long-term gold price increase market still has at least 7-8 years left, while it has only been about 2 years so far. According to him, the current skepticism and anxiety of investors is actually a common state in the early stages of a prolonged price increase cycle.
Meanwhile, Mr. Michael Moor, founder of Moor Analytics, also predicted that gold will increase next week. He reiterated that from August 16, 2018, breaking the 1,183 USD mark has been a signal that the strength of price increase is returning over a longer timeframe. According to him, although some signals in the medium and short-term framework are currently temporarily suspended, the overall picture has not changed in a negative direction.
The most important thing in his assessment is: “At the present time, the trend is still up.” He also believes that if the price maintains the upward space when opening the session on Monday, the market will leave another upward reversal signal in the medium-term framework below.
It can be seen that the common point in the views of all three experts is that they do not see the recent correction as a sign that the upward trend of gold has ended.
Mark Leibovit maintained his upward stance. Jesse Colombo sees that the technical support foundation is still intact and believes that the recent decline was more of a temporary reaction than a reversal of the trend. Michael Moor continued to defend the view that the dominant trend of the market is still upward.
In the context that the market is about to receive more important US economic data, along with unpredictable geopolitical fluctuations, gold will clearly still face strong fluctuations.
However, with analysts maintaining a positive outlook, current fluctuations seem not enough to deny the prospect of further increase for the precious metal in the near future.
