From Peak to Correction: Gold Hit by Profit Taking
Gold prices corrected on Thursday after a sharp rally the previous day triggered profit taking. Pressure also came from easing market concerns about US-Iran military escalation, which temporarily reduced the appeal of safe-haven assets.
At the last update, spot gold was around $4,608.77/oz, while US gold futures weakened to around $4,613.00/oz.
Sentiment on gold also "cooled" after US President Donald Trump expressed a more lenient stance regarding Fed Chairman Jerome Powell. In an interview, Trump said he had no plans to fire Powell despite the ongoing criminal investigation, leading the market to assess the risk of a monetary policy shock as less tense than previously.
Market participants are now shifting their focus to the release of US weekly jobless claims for the next clue to interest rate direction. In general, the prospect of lower interest rates tends to support gold, but in the short term, the market remains sensitive to data that could change Fed expectations.
Meanwhile, silver also took a deeper hit. Silver prices fell to around $89.63/oz in the last update, reflecting more aggressive profit-taking after briefly hitting high levels.
Source: Newsmaker.id
