Gold prices are expected to drop sharply in the next few days
After continuously increasing sharply to a record high of more than 1,800 USD/ounce, many experts have predicted that the price of gold will tend to decrease next week. The decrease may fall below the 1,700 USD/ounce mark.
This week, the gold market has fluctuated strongly beyond the forecast of analysts. In the session of August 10-11, the gold price continuously increased by more than 3% to a record high of over 1,800 USD/ounce.
Standard & Poor's credit rating downgrade has added to market worries about the stability of some European economies and other general financial turmoil, and has pushed gold prices to a record high of $1,817.60 an ounce this week.
Gold prices have broken all resistance levels, forcing analysts to start calculating and forecasting higher levels. From 1,800 USD/ounce, the current gold price may increase in the near future to 2,000 USD/ounce and then possibly 3,000 USD/ounce.
However, from this record increase, investors began to sell off their stocks to make a profit to cover their losses, as well as to invest in other risky assets. In the last two sessions of the week, the price of gold quickly dropped to around the $1,700/ounce mark.
This week, the SPDR Gold Trust sold its largest amount of gold this year, 23.6 tons. Other investors were forced to pay attention to the massive profit-taking by large investment funds like SPDR and they believe that the gold price decline is likely to continue.
According to experts, gold prices may continue to fall next week. The recovery of the stock market has caused money to leave the gold market. Katherine Spector, a commodity analyst at CIBC, said that the stock market's recovery could cause gold to correct lower.
According to Frank McGhee, a gold trader, the market may continue to sell gold next week, so the gold price will likely continue to be under downward pressure.
In a recent Kito.com survey of 34 gold dealers, investment banks, traders and technical analysts, 23 gave their opinions on the gold price trend. Of the 23, 5 predicted gold would rise, while 14 predicted gold would fall, with prices remaining flat or little changed.
Those who predict gold prices will fall next week say that the recovery in stocks and the CME Group's decision to increase margin requirements for gold investors are among the reasons for gold's decline this weekend and will continue this situation next week. According to some others, the possibility of gold prices trading at $ 1,675 / ounce next week.
According to Vnmedia
