Gold trade to enter period of investor-driven volatility
GOLD’S extraordinary ascent has entered a new phase marked by heightened volatility as speculators increasingly drive price movements, said Reuters on Thursday.The newswire added, however, that market analysts have maintained their bullish outlook for 2026 despite expectations of reduced central bank demand.The precious metal has surged 54% this year, on course for its strongest annual performance since 1979, breaching $3,000 per ounce in March and $4,000 in October before reaching a record $4,381 on Monday.“The nature of the rally has changed, driven now by Western investors rather than the stickier emerging market buyers of most of the last two years,” said John Reade, senior market strategist at the World Gold Council.Political tensions, uncertainty over US tariffs and fear-of-missing-out buying have powered the advance, which has brought greater price swings. Gold tumbled five percent on Tuesday in its steepest daily decline for five years.“A consolidation would in fact not be unusual after such a sharp and steep rally and should be considered healthy,” said Julius Baer analyst Carsten Menke. “The fundamental backdrop for gold remains favourable.”The metal has gained 20% since the Federal Reserve began cutting interest rates in September, outpacing its performance in previous easing cycles.However, concerns are mounting that equity market corrections could force investors to liquidate gold holdings to raise cash or meet margin calls.Central banks are expected to maintain elevated buying levels, whilst physical demand from jewellery sectors has weakened sharply. Chinese gold imports dropped 26% between January and September, whilst Indian imports fell 25% in the year’s first seven months.The post Gold trade to enter period of investor-driven volatility appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com
