Analysts: Gold still has short-term downside potential

Golden Ten Data Futures, March 23 — Is there still room for gold prices to fall in the short term? Duan Endian, precious metals researcher at Dayou Futures, believes that gold prices indeed still have some room for short-term decline, but this downward movement is more of a short-term correction rather than the start of a downward trend. "From both technical and capital perspectives, the current market is in a phase of repricing the Federal Reserve's policy of maintaining higher rates for longer. The rise in US Treasury yields and the strength of the US dollar are direct suppressive forces, and gold prices may once again test key support levels." "This downside space is limited," Duan Endian stated. The ongoing escalation of geopolitical tensions provides solid support for gold prices. Once gold prices sharply fall due to interest rate factors, strategic buying will quickly step in to provide a floor. Therefore, gold prices are likely to maintain a wide-range oscillation pattern with both upper and lower bounds in the short term. The downside space depends on the extent of the rise in real interest rates, while support comes from the era-driven demand for safe haven and the logic of monetary credit reconstruction.