Analysts: Gold Still Has Short-Term Downside Potential

Reported by Jinse Finance, on March 23, does gold still have room for a short-term decline? Duan Endian, a precious metals researcher at Dayou Futures, believes that gold indeed has some short-term downside potential, but this decline is more of a short-term correction rather than the start of a downward trend. "From a technical and capital perspective, the current market is in the process of repricing the Federal Reserve's policy of maintaining higher interest rates for longer. The rise in U.S. Treasury yields and the strength of the dollar are exerting direct pressure, and gold prices may once again test key support levels." "This downside potential is limited," Duan Endian stated. The ongoing fermentation of geopolitical tensions provides solid support for gold prices. Once gold prices experience a sharp drop due to interest rate factors, strategic buying will quickly step in to stabilize the market. Therefore, in the short term, gold prices are likely to maintain a wide-ranging oscillation pattern with a ceiling above and a floor below. The extent of the downside depends on the peak level of real interest rates, while support stems from the era-defining demand for safe-haven assets and the logic of monetary credit reconstruction. (This content and viewpoint are for reference only and do not constitute any investment advice.) (Futures Daily)