Today's Gold Correction: Buying Opportunity or Cautionary Signal?
Gold experienced a slight decline in today's trading after a long rally that had pushed it near a record high. Selling pressure emerged due to investor profit-taking, a strengthening US dollar, and hawkish comments from Federal Reserve officials. However, the medium-term direction still points to upside potential thanks to expectations of interest rate cuts and political uncertainty in the United States.
Fundamentally, gold remains supported by growing speculation that the Fed will soon cut interest rates. The US government shutdown has also added to investor anxiety by potentially delaying the release of key economic data, boosting interest in safe-haven assets like gold. Furthermore, demand from central banks and the influx of funds into gold ETFs remain market-strengthening factors.
Technically, gold remains bullish, with immediate support around USD 3,835 per troy ounce and medium-term support at USD 3,747. Meanwhile, strong resistance is at the psychological level of USD 3,900. As long as the price remains above the support area, the opportunity for an increase towards the resistance level remains open. However, failure to maintain support could trigger a deeper correction.
Overall, although gold weakened today due to profit-taking and a strengthening dollar, the medium- to long-term bias remains positive. Investors are advised to remain vigilant about volatility, especially ahead of the release of US economic data and developments in political negotiations regarding the budget that triggered the government shutdown. (mrv)
Source: Newsmaker.id
