Analyst: Recent Gold Market Shows Clear Signs of "Squeeze"

Odaily According to Rick de los Reyes, Head of Commodities Business and Fund Manager at T. Rowe Price, gold may maintain a sideways consolidation trend in the near term, with the potential to reach new highs subsequently. Reyes analyzed in an email that the recent surge in gold prices evolved extremely rapidly, exhibiting typical "squeeze" characteristics, which drove prices higher within a very short time window. He pointed out that, based on historical experience, a spike in realized volatility is often followed by a period of choppy consolidation before the upward trend resumes. Although excessive positioning in any asset can pose risks, Reyes added that the underlying drivers supporting gold demand remain solid. (Jin10)