Last Saturday, the United States carried out a strong attack on the capital of Venezuela and proceeded to detain the President of Venezuela.
This action was condemned by the international community as a serious violation of national sovereignty. As a result, market sentiment shifted rapidly, with safe-haven demand surging in a short period of time, pushing gold prices back up to the 4,465 USD/ounce area.
In the short term, investors are focusing heavily on news surrounding this conflict and the potential for escalating tensions in the near future.
This week, the Non-Farm Payrolls report will also be released toward the end of the week, making it highly likely that the market will experience strong and continuous volatility with wide trading ranges until there are clearer developments.
Gold prices are expected to continue their upward trend in the coming period. However, this will be interspersed with sudden corrections driven by profit-taking activities from investors. Therefore, during this time, trading should be conducted with extreme caution to avoid sharp market shakeouts.
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