Gold price continues to fluctuate, analysts say it has entered a consolidation phase

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　　[Global Times Finance Comprehensive Report] On March 19, gold prices rebounded after nearly a 4% drop on March 18, with bottom-fishing buyers helping gold withstand surges in oil prices and inflation risks. According to Bloomberg, gold prices rose as much as 1%, partially recovering some of the ground lost during six consecutive days of decline, the longest losing streak since the end of 2024.

　　The report states that rising crude oil and natural gas prices have increased inflation risks, lowering the prospect of interest rate cuts by the Federal Reserve and other central banks. This is a negative factor for gold, which does not pay interest; a stronger US dollar also drags down dollar-denominated commodities.

　　“A stronger dollar, along with broader tightening pressure from developed market central banks, brings uncertainty to gold's short-term movement,” said Nicholas Frappell, Global Head of Institutional Markets at Australia's ABC Refinery Pty. “However, if inflation rises faster than policy rates, the resulting decline in real interest rates could help gold over the medium term.”

　　Although gold prices are still up about 12% so far this year, recent momentum has stalled due to weakened rate cut expectations and some investors selling gold to meet margin calls elsewhere in their portfolios.

　　“Gold has entered a consolidation period,” said Christopher Wood, Global Head of Equity Strategy at Jefferies, predicting that gold prices will fluctuate between $4,500 and $5,500 per ounce. (Wen Hui)

Editor: Zhu Henan