Why Did Gold Suddenly Drop Again?
Gold is under pressure again as global markets enter risk-on mode. Signals of peace between the US and China trade have reduced investors' need for safe haven assets, leading to a correction after a major rally. However, this is more of a blowout than a full-blown bearish trend, as gold's annual price remains high, and government debt, currency weakness, and central bank purchases remain key drivers.
Going forward, the key focus will be on the Fed's interest rate. If the Fed cuts interest rates, this would be bullish for gold, as holding gold becomes cheaper than holding money in interest-bearing instruments. However, short-term gold could remain volatile if global risk sentiment is strong and funds flock to stocks and cyclical commodities rather than safe havens. So, a short-term correction is reasonable, but in the medium term, gold still has reason to be held as a hedge. (asd)
At the time this analysis was released, the gold price was at $4,080.
- Buy if the price is at $4,085.
- Sell if the price is at $4,075.
Resistance 2: $4,095.
Resistance 1: $4,090.
Support 1: $4,070.
Support 2: $4,065.
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
