Bursa Malaysia derivatives predict that gold will continue its rise this week to track the worsening war conflict in the Middle East and market uncertainty in the United States (US).
Meanwhile, the price of gold is now at $2,306.88 which is down by 0.97% since the opening of Asian trading this morning.
OCBC Bank in its statement said gold has reached a jump of 11.5% this year on April 3 and may extend further in the near future.
They remain of the view that gold prices will remain bullish due to broad easing sentiment in global markets to cut interest rates, some giant financial institutions getting involved in safe asset investments and widening geopolitical conflicts.
Commenting again, this increase is similar to what happened in 2001 where the price of gold strengthened high when the Federal Reserve (Fed) ended its policy tightening.
According to SPI Asset Management, Stephen Innes said that geopolitical risks will continue to affect the ups and downs of prices in the market especially the situation in the Middle East which is getting worse.
This consolidation is a positive trend for gold in early 2024, it is also a sign that a new wave will continue to increase the price further.
For now, the market is still confused as to whether gold will correct its price or climb even higher because some economic data and market sentiment are still unclear.
The period of price correction is seen not to give much significant change and this will continue to provide profit opportunities for investors out there.
This correction is the perfect moment to get involved in the market because every drop will attract a high buying impulse in the market.
