End of a volatile week
Spot gold opened the week at $3,347 an ounce, then surged to $3,370 during Asian and European trading sessions. When North American markets opened, prices continued to surge to nearly $3,390. The rally continued, with spot gold hitting a short-term resistance level of $3,400 an ounce.
Gold prices fell to $3,380 on Tuesday, but were later supported by buying pressure from the European market. When the North American session opened, prices surpassed $3,400 and peaked at nearly $3,433 an ounce.
However, on Wednesday, gold prices fell back to the support zone of $3,383/ounce and continued to fall to $3,353 on Thursday morning. Overnight trading pushed prices down to $3,340 when North American markets opened on Friday.
After hitting a weekly low of $3,327 an ounce, gold prices recovered slightly to $3,340 and hovered around this level until the end of the week.
The market ended a volatile week with several failed attempts to break resistance, showing a tug-of-war between buyers and sellers around key price levels.
Gold price forecast next week
Kevin Grady, president of Phoenix Futures and Options, said gold prices were under slight pressure from positive trade news but not enough to trigger a deep correction. He predicted that the precious metal would continue to rise along with stocks thanks to strong central bank buying and the need to diversify away from the US dollar.
Although trading algorithms reacted to the good news, causing gold to fall slightly, Mr. Grady said this was only a temporary correction and was unlikely to push prices down to the $2,700 threshold.
The focus next week will be on the Federal Reserve's statement, PCE inflation data and the non- farm payrolls report. Investors are awaiting signals on interest rates from the September meeting.
Grady predicts a split at the upcoming Fed meeting and thinks Chairman Jerome Powell could signal a dovish tone. “Even if the stock market rallies, that doesn’t mean gold is going to fall. That’s an unusual signal,” he said.
The market is in a period of rising equities and gold, a trend that has been evident for the past two years, Grady said. Central bank gold purchases will continue, and the metal will rally on its own fundamentals, not just stock market sentiment.
From a technical perspective, Alex Kuptsikevich, senior analyst at FxPro, said concerns about US-EU trade tensions and the previous decline in the platinum group (PGMs) helped gold surpass $3,400/ounce.
However, the situation changed when the White House reached a trade agreement with Japan and reduced import tariffs, causing gold to return to its previous accumulation zone.
Platinum and palladium benefited more as investors shifted to cheaper metals as gold was seen as "overbought," Kuptsikevich said.
Platinum is highly sensitive to tariffs due to its heavy reliance on the auto industry. A reduction in tariffs could revive gains and put pressure on gold if capital continues to flow out of the market.
Mr. Kuptsikevich commented that the gold price is below the 50-day moving average (MA50). If it cannot recover above this level, the price is at risk of falling deeply to $3,150, or even $3,050/ounce.
Domestically, gold prices on July 26 fell sharply compared to the previous session. SJC gold bar prices were listed at VND119.6-121.1 million/tael (buy-sell), down VND600,000/tael for selling and VND100,000 for buying.
SJC's 1-5 chi gold ring closed at 114.5-117 million VND/tael and Doji 's 9999 gold ring closed at 116-118 million VND/tael, down 500,000 VND in both directions.
Vietnam+Source: https://baohaiphongplus.vn/gia-vang-bien-dong-manh-chuyen-gia-du-bao-dien-bien-kho-luong-sap-xay-ra-417332.html
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