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<Commodity>T. Rowe Price: Gold Prices Still Have Potential to Test New Highs
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T. Rowe Price commented that the recent volatility in precious metals largely reflects a consolidation after a market upswing, rather than the end of the gold uptrend. The last segment of the recent gold rally came quite brisk, with an evident characteristic of short squeeze, causing gold prices to surge in a short period. Observing historical trends, when realized volatility rises sharply in the short term, the market often needs time to digest for profit-taking, subsequently entering a sideways consolidation phase, and potentially sustaining the uptrend. Under this case, gold prices may jolt within a range in the short term but still have the potential to test new highs. T. Rowe Price stated that the core factors supporting gold demand have not changed, unless there is a visible and sustained tightening of the global financial environment. However, according to observation at the moment, there is not enough evidence to suggest that major central banks are rapidly moving in that direction, which also limits the likelihood of sustained close position in the gold market. AASTOCKS Financial News Website: www.aastocks.com |
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