Analyst: Seasonal bullish trend nearing its end, gold faces volatility tests and direction choices

Deep Tide TechFlow News, February 8th, according to Jin10 Data, Investinglive analyst Adam Button stated that gold failed to hold above the $5000 level this week, which is undoubtedly disappointing. However, when compared to silver’s performance, it becomes clear that gold remains relatively stable. Nonetheless, the intense volatility cannot be ignored, as it indeed brings a sense of unease.

In the coming week, the most favorable scenario for gold might be a decrease in volatility, even if this means a slight decline in price. Unfortunately, gold’s volatility may not subside quickly; it often takes a sustained period before gradually calming down.

In the next few days, the market will focus on the potential catalysts from the Iran and Ukraine situations. On Wednesday, the latest non-farm payroll report will be released. For bulls, a pullback in the US dollar index might provide some encouragement and could serve as an upward catalyst.

It is worth noting that gold has remained resilient despite a series of margin hikes, which indeed reflects underlying market buying support. Ultimately, if gold prices can stabilize within the $4500-$5000 range for a week (or several months), it would be a positive signal. The downside is that the traditional seasonal upward phase for gold is now nearing its end.