Gold investors should brace themselves for weeks more of market whiplash. In other words, if the recent volatility in the price of bullion has your stomach churning and your eyes twitching with anxiety, you’re gonna need to get used to it fast.
Over the past month, the price of gold has swung from a low around $1,800 a troy ounce to a high of $2,064. It has subsequently fallen again, according to Bloomberg data. One ounce would recently fetch around $1,932.
And the bad news for investors who get anxious is that such moves will be the norm for the foreseeable future, experts say.
No Gold Market Stability Likely Anytime Soon
“Precious metals volatility are expected to continue,” states a recent trade signal report from New York-based commodities consulting firm CPM Group. “Gold prices should be expected to trade a wide range.”
In other words, expect lots more up and downswings over the next few weeks.
The reason is that there is so much economic and political uncertainty that is giving investors bouts of anxiety. In turn, that’s affecting the gold market.
The CPM report explains in further detail:
For that reason, CPM sees three more weeks of tremendous price swings in the yellow metal price.
“We expect higher price volatility and consolidation in the near term,” says Juan Carlos Artigas, head of research, World Gold Council, an industry group. Part of the reason is some recent weakness in consumer demand for jewelry and for electronics.
Or put another way, brace yourself for some gold market tumult.
This article originally appeared on Forbes.
