Gold price forecast: Will the positive momentum continue towards $5,000?

2 hours ago

1 minute read

Gold price forecast: Will the positive momentum continue towards ,000?

Gold finished Trades for the week at $4,831 an ounce on Friday, up $40.95, or 0.85%. This rise was characterized by positive factors, as Iran confirmed the opening of the Strait of Hormuz (before announcing its closure later on Saturday), and Oil prices rose sharply, and inflation expectations fell.

The decline in oil prices and the weakness of the The US dollar played a major role in this rise, which led to a positive response from gold.

Many experts believe that although gold is subject to temporary pressure as a result of the financial market’s trend towards higher-yielding assets, the medium-term outlook is still inclined towards the rise.

Gold Price Expectations

says Mark Chandler, Managing Director of "Bannockburn Global Forex"Gold prices will likely rise as the market returns to its previous normal state, indicating a decline in selling pressure from central banks, while purchasing power still exists from some countries such as China and Poland.

Chandler believes that the nearest resistance area for gold is located around the level of $5,000 per ounce, and he also indicated that momentum indicators are still sending positive signals.

On the other hand, Daniel Pavilonis, chief commodity broker at the company believes "ROG Futures"that gold may not be the focus of attention currently due to the focus of cash flows on stocks, but the appeal of the precious metal will return soon.

According to Pavelonis, if short-term risk appetite continues, the market may witness a temporary period of decline for gold.

In general, optimists see the current correction in gold prices as mostly short-term. In light of continued geopolitical risks, weak confidence in the US dollar, and high demand from central banks, gold still has great opportunities to rise again.