The gold market fell sharply from the record high set last week, closing at $3240.60 per ounce, with a weekly decline of about 2.28%; However, analysts point out that despite selling pressure, there are no signs of panic in the market. Therefore, the gold price may consolidate within a higher range.

Phillip Streible stated that after experiencing intensified market volatility, gold seems to be testing the key position of $3250. At the beginning of the Asian market on Monday (May 5th), spot gold rebounded and fluctuated, currently trading around $3265.26 per ounce, with an increase of about 0.77%.

He said, "Gold must break through $3300 to take off again, but I am currently unsure if the market is ready

The current gold price has fallen more than 7% from its high of $3500 per ounce; Up to now, it has risen by nearly 24% within the past few years. Despite selling pressure, gold still maintains a strong upward trend.

Michael Brown, Senior Research Strategist at Pepperstone, stated in a report last Friday that the correction in gold prices is an opportunity for him to buy on dips, as the bullish logic for gold remains solid against the backdrop of policy volatility in the Trump administration and a slowdown in the US economy.

Ole Hansen, head of commodity strategy at Saxo Bank, said he is also buying into the downtrend in gold, but warned that there is still further downside potential for gold prices.

Hansen stated that he is closely monitoring the demand in the Asian market over the next week. He pointed out that last week when gold fell to $32200, it coincided with Chinese investors embarking on a five-day holiday.

He said, "The key to gold is how Chinese investors react within 24-48 hours after their return on Tuesday. Will they panic and sell off gold with a low opening gap, or will they see it as a good opportunity to accumulate chips

Meanwhile, Hansen pointed out that gold also needs new catalysts to attract more Western demand.

He said, "Currently, I am focusing on the key support level of $3160-3170. Only when it falls below $2950 will I start to reconsider my bullish view on gold

For many analysts, the new catalyst driving gold prices up again may come from next week's Federal Reserve monetary policy meeting.

Although the US economic data has slowed down, it still shows some resilience. Data shows that GDP contracted by 0.3% in the first quarter; But the drag mainly comes from import growth, partly due to companies investing in equipment to increase production capacity.

For the labor market, this has also been a disappointing week with a decrease in job vacancies and weaker than expected private sector employment growth. However, these reports were overshadowed by better than expected official labor market data. Last Friday, the US Department of Labor reported that 177000 new jobs were added last month, exceeding expectations. The unemployment rate remained unchanged at 4.2% last month, and salary growth remained relatively stable. Last week's economic data also showed that inflationary pressures remained stable.

Some analysts suggest that, overall, these economic data may provide space for the Federal Reserve to signal a shift in its monetary policy stance this week. Since the beginning of this year, the Federal Reserve has maintained a firm neutral stance and has made it clear that it is not in a hurry to cut interest rates, as the labor market remains healthy and inflation risks persist.

The market does not expect the Federal Reserve to cut interest rates this week, but it may release dovish signals of an imminent rate cut.

Naeem Aslam, Chief Investment Officer of Zaye Capital Markets, said, "As far as keeping interest rates unchanged is concerned, these data undoubtedly weaken the supporting reasons. Most investors believe that the Federal Reserve will change its current policy and start cutting interest rates. As for gold prices, we have seen a considerable correction, and now prices look relatively cheap

Aslam added that although gold remains attractive in this correction, as the Trump administration continues to negotiate potential trade agreements, in addition to the Federal Reserve's monetary policy decisions, the market will remain sensitive to improvements in geopolitical sentiment.

He said, "We still need to closely monitor the tariff issue, which is very important. The current tariff pressure seems to have eased, and there is a possibility of a downgrade in the situation. Therefore, this means that the upward space for gold may be limited

Other analysts also believe that gold is facing downside risks. Carsten Fritsch, precious metals analyst at Commerzbank, said that market expectations for interest rate cuts this year may be too high, and a pullback in expectations could put pressure on gold prices.

He said, "The market currently expects a 90 basis point rate cut before the end of the year. We believe these expectations are exaggerated, which means there is a risk of a pullback in gold from this perspective

Economic data to be monitored this week:

Monday: US ISM Non Manufacturing PMI

Wednesday: Federal Reserve Monetary Policy Resolution

Thursday: Bank of England Monetary Policy Decision; Number of initial jobless claims per week in the United States