Many experts lose confidence in short-term gold prices
Darin Newsom - senior expert at Barchart.com predicted that gold prices this week will tend to decrease: Technical analysis shows that the June gold contract is still in a downtrend. If the US Federal Reserve (FED) keeps interest rates unchanged, it could support the USD and put more pressure on gold.
Michael Moor - founder of Moor Analytics commented that gold is in the final stage of a long-term increase cycle. He said prices have reached the maximum down threshold according to his model and are temporarily stagnant, but the main trend is still down.
Sharing the same view, Mark Leibovit - founder of VR Metals/Resource Letter - said he is holding counterpart ETFs such as GLL and ZSL to hedge against downside risks.
Alex Kuptsikevich - an expert at FxPro - also believes that if gold cannot hold the $3,200 zone, it could fall sharply to the $2,900 zone, even $2,600 - $2,700 if it breaks the 50-day moving average.
Some optimistic opinions say gold will recover
Some experts believe that gold prices are in a technical adjustment phase and may soon recover.
Jim Wyckoff - senior analyst at Kitco expects gold to recover slightly thanks to technical buying power after strong selling pressure last week.
Adam Button - Head of currency strategy at Forexlive.com assessed that the market is expecting too much from trade agreements. If the US does not cut taxes deep enough, major partners will not agree. That could make gold bounce back, he said.
Marc Chandler - Director of Bannockburn Global Forex predicted that gold prices could fall slightly to the range of 3,150 - 3,165 USD/ounce if the USD continues to strengthen. However, he said that if gold breaks above $3,315/ounce, the negative trend will be neutralized.
The analysis team at CPM Group recommends that investors who have bought gold should continue to hold and wait for additional buying opportunities if prices fall to the range of 3,000 - 3,150 USD/ounce. From now until August could be the adjustment period, but the increase could return by the end of the year, the report said.
Experts maintain a neutral view
Meanwhile, some experts believe that gold prices will continue to fluctuate within a wide range but have not clearly defined the trend.
Gold is still fluctuating strongly according to policy and trade news, said John Weyer, director of commercial hedging at Walsh Trading. Although it is a safe haven asset, it also carries many risks. I think gold will move sideways, but within a large range.
