Spot gold opened the week at $3,450.03 an ounce. In the first few hours, it fell to $3,411 an ounce and continued to lose the $3,400 mark when the North American market opened.
The following trading sessions did not witness any further strong sell-offs, but gold prices were unable to rebound. Gold prices remained in the range of $3,375-$3,400/ounce until Wednesday morning. The hawkish stance of the US Federal Reserve (Fed) pushed gold prices down to $3,365/ounce when the North American market closed.
Spot gold prices continued to fall on Thursday, falling to $3,350 an ounce. This attractive price attracted buying interest, helping the precious metal recover to $3,377 an ounce.
As Asian markets opened, investors sold off sharply. Spot gold fell from $3,368 an ounce to $3,346 and bottomed at $3,341 an ounce.
Gold prices suddenly jumped from $3,344 to $3,370 an ounce in just one hour, reflecting investors' decision to net buy to protect against geopolitical risks.
After that, gold prices remained within a fairly narrow range, increasing and decreasing by only about 8 USD, showing the market's caution.
According to Kitco, spot gold prices closed the week at $3,344/ounce. Gold futures for August 2025 delivery on the Comex New York floor traded at $3,364/ounce.
Gold price forecast to decrease in short term
In the coming time, experts predict that gold prices may face short-term downward pressure due to geopolitical factors or monetary policy.
Adam Button, head of currency strategy at Forexlive, said the volatility in the precious metals market reflects the ups and downs of geopolitical risks. In the current context, Button is cautious and reluctant to predict the trend of gold prices.
“Gold is now trading around the Middle East,” said Button, with buyers worried about a war in Iran.
While it may not break the April peak, Mr. Button said that gold prices remaining at current levels is a success and that long-term support factors will soon come into play again.
In the long term, the gold market will continue to be influenced by factors such as the US-China trade war, US budget issues and AI technology development trends.
Commenting on the key inflation data due next week, Button said that the May Personal Consumption Expenditures (PCE) Index is not a major risk event for gold.
The Trump administration’s efforts to find a diplomatic solution to the Israel-Iran conflict are negative for gold, according to Sean Lusk, director of commercial hedging at Walsh Trading. In fact, there has been no inflow of money into gold as a safe haven.
However, long-term funds and investors are not letting gold prices fall too far. Mr. Lusk sees the medium-term trend of gold as bearish. The market could see a liquidation at the end of the month and the end of the quarter.
Mr. Lusk said the market could see a divergence between what is happening in the stock market and what is happening in the gold market, with gold prices likely to revisit their April lows by the end of the third quarter.
The $3,337 level (50-week moving average) is a key level that needs to be held. If that key level is broken, gold prices could quickly fall to $3,187.
Agreeing, Marc Chandler, CEO at Bannockburn Global Forex, said gold prices could test some medium-term bottoms in the coming week.
Contrary to popular belief, gold fell despite the escalation of the Israel-Iran conflict. The 2.3% drop was the biggest weekly loss in five weeks. The US dollar index rose for the first time in three weeks.
The precious metal slipped below its 20-day moving average ($3,350/oz spot) before the end of the week, but has not closed below that level for the month. Support on the chart is in the $3,290-$3,295 area.
A break above $3,265 could signal a more extended consolidation/correction phase, potentially prompting a test of $3,200, Chandler warned.
Source: https://vietnamnet.vn/gia-vang-bat-ngo-giam-sau-du-bao-sap-toi-ra-sao-2413718.html
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