According to analysts,JackpotworldfacebookGold and silver are still on a strong upward trend, but investors should be prepared to see price adjustments next week, as recent gains seem to have peaked.
Volatility in gold and silver intensified again on Friday, as the two precious metals failed to maintain the significant gains seen earlier in the day. At one point, the price of gold rose more than 4% to 2% per ounce.Jackpotworldfacebook, a high of 448.8 dollars. June gold futures last traded at $2355.6 an ounce, up from last Friday.Jackpotworldfacebook0.4%.
At the same time, although silver's gains narrowed on Friday, it managed to maintain its excellent performance against gold. Earlier Friday, silver hit a three-year high of $29.905 an ounce. May silver futures last traded at $28.105 an ounce, up 2 per cent from last week.
Although gold failed to stay above $2400 an ounce, analysts noted that gold remained relatively strong. Although the market began to price a possible rate cut in June after higher-than-expected inflation in March, gold set a new record.
According to the CME Fed Watch tool, the market sees a 27 per cent chance of a rate cut in June, down from 50 per cent last week and 68 per cent a month ago. However, analysts point out that while the Fed may delay the start of the easing cycle, they are unlikely to raise interest rates again, meaning real interest rates are still likely to fall, which is a good environment for gold.
While gold is still well supported, some analysts say the rally is becoming excessive.
Naeem Aslam, chief investment officer of Zaye Capital Markets, said: "I think momentum is still strong, but at the same time, we should not be greedy. After the amazing increase in the price of gold, we think it is time to make a proper profit."
Philip Newman, a director and founding partner of Metals Focus, also said that selling at a profit might be a good idea for investors. He pointed out that the gold market should undergo some consolidation after a record and unprecedented rise.
Ole Hansen, head of commodity strategy at Saxo Bank, said that while the price momentum was very strong, he was focusing on the general trend driving up prices through recent fluctuations. He noted that gold remained well supported, in part because of heightened concerns about inflation and increased uncertainty about the health of the global economy.
"now the market is looking for problems before they actually go wrong, which exposes the market to the risk of adjustment. Will I take the chips off the table?Jackpotworldfacebook? I don't think so, because I'm a long-term investor. " "I'm still thinking about what will happen if economic data start to weaken and inflation continues to be bullish," he said. This will prove the performance of gold. "
Despite concerns about gold's dollar-denominated performance, gold has risen a record against all major currencies. Gold is up 20% against the euro, 22% against the Australian dollar and 26% against the Japanese yen and the Swiss franc, according to Hansen.
Christopher Vecchio, head of futures strategy and foreign exchange at Tastylive.com, pointed out that although he is bullish on gold and silver, he will not catch up with the market at current levels. He added that he planned to buy in the event of a price correction. "the Fed has told us that their next step will be to cut interest rates, although we are seeing solid economic growth and stubborn inflation. This will push up real yields, which is a positive environment for gold and silver. "
While market sentiment is expected to boost prices in the precious metals market, some economic data are likely to exacerbate recent volatility.
Key data worth watching next week include regional manufacturing data, March retail sales data and housing data. Federal Reserve Chairman Colin Powell will also make a speech during discussions with Bank of Canada Governor McCleme next week. The International Monetary Fund (IMF) will also hold its annual spring meeting next week in Washington, D. C.