The expert explained the reasons for the decline in gold prices after the annual growth

The decline in gold prices that occurred within a few hours should not be considered as the beginning of a market reversal, but as a short-term correction after the rapid growth that has continued over the past year. This opinion was expressed by Alexander Schneiderman, head of Alfa-Forex's Customer Support and Sales department, in an interview with Izvestia on October 22.

"In 12 months, the precious metal has risen in price by more than 51%, and in the last six months alone it has added 18.3%. This pace makes the market particularly sensitive to changes in investor expectations and the news background," he said.

The reasons for the volatility, the expert explains, are primarily related to technical factors: overbought conditions, a significant volume of margin positions of trailers and general nervousness on financial markets.

Invaluable contribution: gold may rise in price by 10% to $4,300 per ounce

The precious metal has already strengthened 1.5 times since the beginning of the year, but does it make sense to invest in it now

In recent months, gold has remained one of the few assets perceived as a safe haven amid U.S. debt risks, declining investor confidence in the dollar, instability in the European banking sector, and trade disputes between the world's largest economies. However, expectations of a possible mitigation of the confrontation between the United States and China, including the upcoming meeting of their leaders, temporarily reduced demand for defensive assets and provoked profit-taking.

"At the same time, the fundamental picture for gold remains favorable, this strategic reserve stock exchange asset is aimed at new historical records. This year, the volume of gold trading among Alfa-Forex traders has increased significantly, and it ranks second after the euro/dollar currency pair in terms of volume," concluded Schneiderman.

Andrey Syrchin, CEO and founder of Cresco Capital, told Izvestia on October 14 that gold is currently one of the most sought-after assets on the market, as it does not generate profits, it is expensive to store and extract, but its value has almost doubled over the past year. He added that the price of gold could rise to $4.5 thousand or even $10 thousand per ounce.

All important news is on the Izvestia channel in the MAX messenger.