Gold Prices Decline but Analysts Predict Uptrend Amid Persistent Debt and Inflation

The gold market experienced a sharp drop last weekend, but analysts are not completely turning pessimistic. The precious metal closed at around $4,454 per ounce, losing over 3% in a short time and breaking through several key technical support zones.

Selling pressure intensified after US Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole conference, which caused market expectations of interest rates, USD, and US bond yields to increase together, putting significant pressure on gold.

Despite this sharp decline, the latest survey by a precious metals website with 21 Wall Street experts shows that ten people predict gold prices will rise this week. Six experts believe prices may continue to fall, while five others forecast the market will move sideways.

The strong short-term pressure from increasing interest rate expectations has not completely changed the outlook for gold. Many fundamental factors that boosted its upward momentum remain unchanged, including the high level of US public debt and persistent inflation.

These factors create a favorable environment for gold holding demand in the medium to long term. Precious metals are considered assets that can benefit when monetary and fiscal policy instability increases and purchasing power decreases.