Gold rebound faces further volatility
Investors are advised to avoid rushing into gold trading for short-term speculation as prices are expected to remain highly volatile amid further downside risks, says the Gold Traders Association (GTA).
Investors are cautioned against hastily entering the gold market for short-term gains, as prices remain highly volatile due to ongoing Middle Eastern conflicts, potential Federal Reserve interest rate hikes, and strong short-term technical indicators. Gold prices surged nearly 3.4% on Wednesday, marking the largest single-day increase since August 19, following Democrats' victory in US midterm elections and the US dollar's decline to its lowest level in over a month.
Despite the rebound, gold has dropped nearly 30% from its January record high of $5,600 an ounce. The Gold Traders Association (GTA) president advises investors to view gold as a long-term commitment with spare cash, as short-term investors should exercise caution due to potential further declines. The outlook depends on US interest rate movements, geopolitical developments, and oil prices.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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