While US stocks continue to show record growth, the gold market, despite its historical highs, has been weakening recently.

The shiny metal increased by 4% this year, while SPDR Gold (GLD A-) shares increased by 3%. Although at the beginning of last month, the prices of gold reached their highest level since April 2013, it became more subdued when February started.

Since the end of January, gold has been trading in a sideways trend, as investors accumulate in stocks.

Problems with the precious metal continue in the Chinese gold market, where demand for jewelry is expected to decline, due to the growing concerns about the coronavirus.

The demand for jewelry is expected to decline in the global gold consumption market. "People are not in the mood to buy jewelry. Stores and shopping centers are closed due to the virus. Sales of gold jewelry and bullion will fall significantly this year, " Zhang Yongtao, executive director of China Gold Association, said in a recent interview with Bloomberg.

Usually, the value of gold moves back to the dollar, since the value of the precious metal in the international market is indicated in US currency.

"Gold prices have already increased as much as possible," Georgette Boelle, senior analyst for foreign exchange and precious metals at the Dutch Bank, said in a report published last Friday. "We still expect a price correction in the coming weeks and months."

Considering the fact that, in general, bullish gold positions are becoming more crowded, it may be better for investors to wait for a correction.

Besides the current technical data, what can end gold's growth?

To begin with, the coronavirus outbreak is increasing and receding. China is taking quick steps to normalize its economy, to show the world that it is back in business. In addition, rising inflation may also reduce consumer interest in gold, although this is unlikely to happen because of the modest growth for several years. In order to understand the movement of the precious metal, gold traders should closely monitor the bond market, as well as the credit market.

New statistics on those infected in China have been published today. It recorded the lowest number of cases since January 23, indicating 394 newly infected, compared to 1,693 on Wednesday:

Good luck in trading and control your risks!