Gold is recently showing impressive stability. Its prices slightly changed in the direction of decline, but as soon as they fell, they immediately increased. Therefore, April futures for a classic asset closed down by 0.5% on Thursday. In monetary terms, the difference was just over $ 8. Today, gold showed a symbolic increase again. The price rose by 0.03% on the Comex exchange, thereby adding $0.55. Now, the yellow metal continues to trade in a sideways trend around $ 1,730. Based on today’s morning data, the precious metal approached the level of $ 1,725.75.

According to experts, this week’s movement of the gold’s quote looks like a steady fluctuation. But how long will it keep this pace? So far, analysts are having a hard time to give detailed forecasts due to the lack of strong impulse capable of pushing the price of the precious metal upwards. Traders still expect a certain and clear signal that can form the further direction of the price. It should be noted that gold’s price is influenced by several different factors, and it is unlikely to certainly say yet which of them will put the strongest pressure on it.

Another factor that supports gold’s price growth is the epidemiological situation. The continuous rising coronavirus cases raises doubt that the economic activity in the world will recover soon. Due to this, traders prefer to invest not in risky assets, but in more reliable assets.

Moreover, Carlo Alberto de Casa, Chief Analyst at ActivTrades (British brokerage company) stated that any significant change in the stock market rate can serve as a good impulse for the new rally of gold. The expert also notes that the growth of the indicated metal is supported by serious volumes of liquidity – Central banks have pumped up its system for the past few months.

On another note, analysts also identify various factors that negatively affect the gold market. For example, the rapid deployment of vaccinations in the world and the expected economic recovery in the US can contribute to the gold’s downward movement. In addition, the price of a classic asset is strongly tied to US government bonds. So, if the yields continue rising in the near future, then gold will inevitably decline.

Margaret Young, Analyst from DailyFX, also forecasted the same thing. She is sure that gold will maintain a downward trend in the near future amid the US dollar’s continuous strengthening and inflation’s growing optimism. It can be recalled that the price of the US currency has risen by almost 1% for the last 4 days, which allowed it to return to the maximum indicators recorded last November 2020.

The material has been provided by InstaForex Company –

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