Chinese New Year Has Passed, Gold Drops
Chinese New Year or Imlek is one of the annual events that always becomes a driving factor for gold prices. This can be seen in the weeks leading up to the celebration which has even lifted the yellow metal to touch its highest level two days after the event ended last Friday.
In fact, the increase in gold to penetrate the $2800 level also received another boost from the uncertainty of the decision of the new American President Donald Trump regarding tariffs that will be imposed on several countries such as China, Mexico and Canada which has created doubts about global trade.
On Monday, a decline in gold began to be seen as has often been seen in previous histories after the Chinese New Year. The decline occurred due to a decrease in physical demand for precious metals due to the end of the big event. Another thing that also dragged down gold was the Fed's doubts about inflation which was still considered quite high so that they still could not cut their interest rates.
In the short term, gold looks set to face a correction related to profit taking and an increase in the dollar related to tariffs that will be imposed on Canada and Mexico on Tuesday. Gold is currently trading at $2,777, down about 0.7% after hitting a high of $2,816 on Friday.
Source: (mrv@Newsmaker)
