Gold prices experienced minor fluctuations on 19/2 (US time), trading between 4,970 and 5,020 USD per ounce, with daily changes not exceeding 30 USD from the previous session's close. Spot gold currently stands at 5,000 USD per ounce, while April gold futures trade around 5,018 USD. This narrow range indicates market indecision.
Silver's short-term trend mirrored gold's, with a modest increase of less than 0,5% overnight to 77,6 USD per ounce, following several sessions of over 4% volatility. The precious metals market remains volatile as geopolitical tensions show no new developments. Geopolitical and economic hotspots often support gold prices, as the precious metal is considered a safe-haven asset.
Market fluctuations are also influenced by recent economic data, specifically a decrease in weekly US jobless claims. This suggests a resilient labor market ahead of inflation data due for release later this week. Daniel Pavilonis, senior market strategist at RJO Futures, noted, "The market is being whipsawed, trading in a narrow but highly volatile range".
Investors are keenly awaiting the US personal consumption expenditures (PCE) price index data, scheduled for release today (local time). This data is crucial for providing further clues on the Federal Reserve's (Fed) policy adjustment path, as PCE is the Fed's preferred measure of inflation. The minutes from the January meeting, released by the Fed on Wednesday evening, showed officials largely agreed to maintain interest rates, but remained divided on the policy outlook.
Despite short-term volatility, many investment funds retain strong confidence in gold's long-term prospects. AuAg Funds, a Sweden-based investment fund, for instance, expects gold prices to reach 6,000 USD per ounce and silver to hit 133 USD, both surpassing previous records. The fund suggests that recent corrections are often "orchestrated" when the market becomes overheated. Large short positions are used to drive prices down, forcing speculators out and prompting small investors to sell. The subsequent buyers are often the same "strong players" who initiated the decline, seeking attractive prices to enter the next leg of the bull market.
Domestically, the market remains closed for Tet (Lunar New Year) holidays. SJC gold bars are stable at 178-181 million dong per tael.
Phuong Dong (according to Reuters, Kitco)
