Securities Daily gold warning led the latest caution from Chinese state-backed media, which told investors not to chase gold at current highs.
The outlet said gold faces near-term risks from policy uncertainty and stretched technical signals. It added that the recent rally depends on views that the U.S. economy is slowing and that the rate cycle has peaked. However, the commentary said that view could come under pressure if inflation surprises on the upside.
A stronger inflation reading could revive higher-for-longer rate expectations, according to the piece. As a result, Treasury yields could rise and hurt demand for a non-yielding asset like gold. The article said that shift could spark a quick pullback after recent gains.
Securities Daily Gold Warning Flags Key Risks
The commentary also pointed to signs of strain in the market. It said recent gains have increased profit-taking pressure, while technical readings suggest gold is overbought. Therefore, the outlet sees a higher chance of a near-term pullback.
It also said offshore speculative flows have reacted quickly to policy signals. That has added to short-term swings in gold prices. Meanwhile, central banks have kept buying on dips, which the article described as a longer-term support for the market.
Tug of War Keeps Gold Range-Bound
The Securities Daily gold warning said this clash between fast speculative money and steady official buying makes a clear move less likely. Instead, the outlet expects gold to stay choppy at high levels. It said the price base may edge higher over time rather than break out sharply or fall hard.
The piece ended with a warning for retail investors. It urged them not to buy blindly at current highs. Additionally, it said investors should size any exposure to match their own risk tolerance and view gold as a long-term portfolio holding.
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Source: InvestingLive
