As of Monday morning, gold prices have been unable to hold gains above $5,000 an ounce. This is because most markets are closed for the start of the new business week.
Gold prices rose to a session high of around $5,032 an ounce overnight, but they weren’t able to keep going up because Chinese markets were closed for the week to celebrate the Lunar New Year.
Since its overnight highs, there has been steady but quiet selling pressure on the valuable metal. Analysts don’t think there will be any big changes on Monday because it is Presidents’ Day and U.S. markets are closed. Ontario is having a Family Day on Monday, so even the Toronto Stock Exchange is closed.
An ounce of gold was last bought and sold for $4,978.1, which is 1.25% less than the day before.
Trading is also very quiet on the silver market. Silver was last bought and sold at $75.96 an ounce, which is 1.75% less than the day before. It’s not as good for silver as it is for gold because it hasn’t been able to keep gains above $80 an ounce and is still a long way from its highs from last month.
Gold prices are setting up a new trading range around $5,000 an ounce, but experts warn that the market is still looking for a bottom, which will keep prices unstable. Most analysts, though, think that corrections will finally be bought because the market’s fundamentals are still strong.
Elior Manier, a Market Analyst at OANDA, told Kitco News that gold prices are still well supported at around $5,000 an ounce because of the high level of global uncertainty.
“Gold can only really get better if the risks in the world peace down.” “Anyway, the rise might stop at these prices,” he said. “I think more bad things should happen, but it depends on geopolitics.”
David Morrison, a senior market analyst at Trade Nation, said that he thinks gold could go down because momentum signs still show that prices are fairly overbought.
“Right now, the big question is whether it can stage a sharp rally from here to try to set a new all-time high or whether it needs a bigger pullback to get things going again.” The daily MACD has moved back from levels where it was overvalued, but it is still well above the “neutral” line. Gold prices might need to at least stay the same for a while longer before they go up. He said in a note, “There’s always the chance that the top is already in.”
Morrison said that gold and silver could keep moving together until they get a clear message from the Federal Reserve. The Fed is likely to keep its monetary policy stable until at least June.
Daniel Hynes, Senior Commodity Strategist at ANZ, said that after inflation data that was lower than predicted, people are now more likely to think that the rate will be cut a third time by December.
“Gold’s long-term outlook is also still good.” “The big picture of the economy looks good,” he said. “Uncertainties in geopolitics and the economy are likely to last, and Trump will likely keep using tariffs as a threat.” More and more, the market is focusing on the possible effects of tariffs, which haven’t fully shown up in economic and inflation figures yet, and there are still concerns about the Fed’s ability to keep its promises in the future. This kind of situation will make investors want real investments like gold even more.
