Correction First, Fly Later
The correction that occurred in gold was not surprising and was actually predicted, gold which had previously made a new high at $2956 had to fall far to the $2888 area related to profit action and several statements that supported the strengthening of the dollar.
When viewed from a technical perspective, it is indeed time for gold to experience a correction, the price that is quite high for quite a long time has formed an overbought area that must be observed which will eventually lead to profit taking action. One factor that must also be observed from the gold correction is its nature which when viewed from its history has always experienced a correction after making a new record.
David Meger, director of metal trading at High Ridge Futures said "The bullish trend is still ongoing... We are not surprised by the consolidation period ahead of several important data," Investors' focus is also on the US Personal Consumption Expenditure (PCE) report, the Federal Reserve's preferred inflation gauge, which will be released on Friday. The last inflation data for this month will be the data that investors have been waiting for as a reference for inflation and interest rates from America.
But why do many analysts still believe that EMA will continue to penetrate $ 3000 for this year? The reason is none other than the big fundamental factors that come from every Donald Trump Decision in setting tariffs that trigger uncertainty in global trade, and the correction that is happening now is predicted to only last for a short period of time and is likely just a foothold taken before making a bigger increase.
Source: (mrv@Newsmaker)
