Gold Price Forecast – Why This Selloff Could Trigger the Next Rally
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Key Points:
- Gold remains in a consolidation phase after a liquidity-driven selloff, with the broader trend still pointing higher.
- ETF outflows and futures liquidation drove the March decline, while early signs of demand are now returning.
- Inflation risk, oil prices, and geopolitical tensions continue to support gold’s medium-term bullish outlook.
Gold (XAU) dropped sharply in March as investors rushed to reduce risk even though inflation pressures and geopolitical tensions remained high. In my view, this move reflects liquidity driven selloff rather than a change in the long-term bullish trend. This selloff points to a period of consolidation before the next move higher. This article presents the key macro drivers, positioning trends and technical levels shaping the outlook for gold.