Expect a strong pull back on Gold next week!Hello traders,
We have seen that Gold experienced a significant bullish trend last week, culminating in surpassing the $3,000 per ounce milestone for the first time on March 14, 2025.
Several factors contributed to this surge:
1. Market Uncertainty Driving Safe-Haven Demand – With ongoing global economic tensions, particularly due to U.S. trade policies, investors are turning to gold as a reliable hedge against instability.
2. Central Banks Boosting Gold Reserves – Many central banks are increasing their gold holdings, adding steady buying pressure that supports rising prices.
3. Speculation on Interest Rate Cuts – Expectations that major central banks, especially the Federal Reserve, may lower interest rates have made gold more attractive, as it benefits from a low-rate environment.
4. Inflation Concerns Fueling Demand – With fears of rising inflation, investors see gold as a traditional store of value that can help preserve wealth over time.
For a long time, many investors expected gold to hit the $3000 mark. Gold broke through that level on Friday, but it ended the day below it. We can anticipate a significant pullback in gold by next week based on recent price action. And these are my thoughts: We will be looking for shorting possibilities below 2978.620, with an initial target of 2961.524 and an overall objective of 2931.979. On the other hand, we can disregard the initial assumptions and assume that the price will continue to grow if we observe that it keeps rising and closes above Friday's high.
How do you plan to trade gold next week traders? Let me know your thoughts in the comment section.
