Will gold come back or continue to increase strongly?

World gold prices tend to increase with spot gold increasing by 3.2 USD compared to last week's closing level to 3,362.9 USD/ounce.

Last week, the yellow metal posted modest gains as expectations that the US Federal Reserve (Fed) would loosen policy this year increased following weak economic data. Experts say that next week is an important time to decide whether gold will reach a new record or not when the market receives the April consumer price index and producer price index reports. Recently, The Fed emphasized that America's inflation war is not effective when inflation is still much higher than the target level of 2%. In addition to the consumer price index and producer price index, this week the market will wait for the US retail sales report, the number of weekly unemployment benefit applications, and the statement of Fed Chairman Powell in Amsterdam.

According to Larry McDonald, founder of the Bear Traps Report, the US is in a persistent inflation war, where all asset classes will see "significant" revaluations and as Therefore, capital flows in the market will gradually shift to hard assets. “This is the time when the Fed takes action, which creates a bullish scenario for hard assets,” he said.

McDonald believes that some metals have significant price increases and predicts gold prices will reach $3,000-3,500/ounce in the next 12-18 months.