The expert allowed the end of the cycle of rising prices for precious metals

The massive liquidation of positions in the precious metals market may indicate the end of a long-term increase in gold and silver prices. This was announced to Izvestia on March 30 by Alexander Schneiderman, head of Alfa-Forex's Customer Support and Sales department.

"The large—scale liquidation of trading positions in the precious metals market in March signals the likely end of a long-term growth cycle," the expert noted.

According to Schneiderman, further market dynamics will depend on macroeconomic factors, primarily on inflationary risks. Rising oil prices are increasing inflationary pressures, which may prompt the world's leading central banks to tighten monetary policy.

The expert explained that in such conditions, the investment attractiveness of gold and silver may decrease, as higher interest rates traditionally limit the demand for protective assets. He also noted that the market will remain volatile in the short term. According to the expert, by the beginning of April, the price of gold may fluctuate in the range of $ 4200-4850 per troy ounce, and silver — in the range of $ 60-80 per ounce.

Schneiderman added that investors continue to closely monitor changes in the global economy, as they will determine further interest in precious metals.

Iran has squeezed gold: why the precious metal has collapsed in price

It has become one of the most affected assets due to the war in the Middle East.

Spartak Sobolev, Head of Alfa-Forex's Investment Strategy Research department, told Izvestia on March 23 that the market could face increased volatility in the coming week. The price of gold will fluctuate in the range of $3900-4650 per troy ounce, and silver — in the range of $ 55-75 per ounce.

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