Unable to overcome the $3,375 mark, gold prices fell sharply in the first session of the week, reaching the short-term support level of $3,342/ounce. The Asian trading session then recorded a recovery to $3,365, but quickly fell sharply to $3,322/ounce by Tuesday afternoon.
The gold market entered a relatively stable period, trading sideways within a narrow range from 3,320 to 3,342 USD/ounce.
A rumor Wednesday morning about the possible resignation of Federal Reserve Chairman Jerome Powell at the request of the Trump administration sent a strong shock through gold prices, with spot prices quickly jumping from $3,325 an ounce to $3,363 in just 45 minutes.
However, the euphoria was short-lived. Gold prices cooled after US President Donald Trump and other officials quickly reassured the market that no changes were imminent at the central bank.
Gold prices hit a weekly low of $3,312 an ounce on Thursday morning, then quickly recovered and surpassed $3,340 by early afternoon the same day.
The precious metal ended the week on a final rally in Asian and European trading on Friday, peaking above $3,360 an ounce. Positive data on inflation expectations caused gold prices to correct slightly, but still held at $3,350 an ounce.
Gold price forecast
Naeem Aslam, chief investment officer at Zaye Capital Markets, said the US dollar is finding support as the Federal Reserve is expected to maintain a neutral stance through the summer. Unless economic data deteriorates significantly, the Fed is unlikely to cut interest rates, which means the US dollar is likely to rise, which is not a favorable scenario for gold prices.
Lukman Otunuga, senior market analyst at FXTM, said that gold prices are currently fluctuating in a fairly narrow range, with support at $3,290 and resistance at $3,370.
Amid escalating trade tensions, pressure from President Trump to cut interest rates and strong US economic data, gold is lacking a clear catalyst to break out.
Looking beyond short-term volatility, analysts warn of the ongoing feud between President Trump and Chairman Powell, which could create significant volatility in financial markets and even overshadow future short-term trends in gold prices.
Sean Lusk, director of commercial hedging at Walsh Trading, said tensions between President Donald Trump and Jerome Powell are a key factor in keeping gold prices at current highs, despite the market looking poised for a correction.
On monetary policy, Mr. Lusk predicts the Fed will not cut interest rates at its July meeting, nor will it rush to make such a move afterward.
Regarding the factors driving gold prices in the short to medium term, Mr. Lusk expressed skepticism about the possibility of the precious metal rising sharply. "Central banks have been buying for the last two and a half years. But do they need to continue buying when the stock market is doing better than expected?", he asked.
Gold prices have had a brief dip to $3,250, with $3,290 being the next support level to watch, according to Lusk.
Marc Chandler, CEO of Bannockburn Global Forex, expressed optimism about the outlook for gold prices in the coming days. He assessed that the recovery in short-term interest rates in the US and the upward adjustment of the USD may have ended or is about to end, creating favorable conditions for gold.
“The precious metal has not traded above $3,400 for about a month. I expect gold prices to rise in the coming days,” Mr. Chandler said.
He also recommended that investors keep a close eye on the gold price trendline from the record high of around $3,500 and the June high of $3,451. This trendline is expected to be near $3,430 early next week and fall to around $3,425 by the end of the week.
If gold breaks above these levels, it will be a positive signal for the uptrend.
Source: https://vietnamnet.vn/gia-vang-bien-dong-manh-chuyen-gia-du-bao-bat-ngo-2423602.html
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