According to TechFlow on February 8th, Investinglive analyst Adam Button stated that gold's failure to hold the $5,000 mark this week was undoubtedly disappointing, but compared to silver's performance, gold remained relatively stable. However, the significant volatility cannot be ignored as it does create a sense of unease.
The most favorable scenario for gold in the coming week is likely to be reduced volatility, even if this might mean a slight price decline. Unfortunately, gold volatility may not subside quickly; it tends to calm down slowly over a period of time.
In the coming days, the market will focus on the potential catalysts from the situations in Iran and Ukraine, with the latest non-farm payroll report due on Wednesday. For bulls, the pullback in the dollar index may offer some encouragement and could act as an upward catalyst.
It's worth noting that gold has remained resilient despite a series of margin calls, reflecting genuine underlying buying support in the market. Ultimately, if gold prices can consolidate in the $4,500-$5,000 range for several weeks (or months), it would be a positive sign. The downside is that gold's traditional seasonal upward trend is nearing its end.
