Profit-Taking Action Prevents Gold from Maintaining $5,000
Gold prices have weakened from the $5,000/ounce area as the market begins to take profits and has yet to see a strong new catalyst following last week's extreme volatility.
Spot gold (XAU/USD) is currently trading around $4,953/ounce, up slightly by +0.1% compared to the previous close — but still fluctuating within a daily range of $4,855–$5,092.
Gold's movement this week has tended to be "fluctuating": it briefly re-surfaced above $5,000 when dip buyers stepped in, then reversed downwards as traders locked in profits. This is understandable, as gold remains well below its late January high (around $5,595) after experiencing a sharp correction.
Another factor holding back gold is the strengthening dollar, making it more expensive for non-USD buyers. Reuters noted that gold fell about 0.3% to $4,924.89/ounce on Wednesday, after previously rising more than 3% intraday—a sign that volatility remains high.
On the sentiment side, safe-haven support hasn't completely dissipated as geopolitical issues continue to revolve around US-Iran tensions, despite ongoing diplomatic signals. This combination of "hot headlines versus negotiation hopes" makes it difficult for the market to determine a clear direction, leading gold to frequently move in a rangebound manner.
Market participants also believe that for gold to "stay" above $5,000, a new trigger is needed—whether from the dollar/yields, interest rate expectations, or a more pronounced escalation in risk. In this context, many investors believe gold's major trend is still supported by fundamentals (global uncertainty, monetary policy, and hedging demand), but the path will be bumpy and likely "zigzag."
Meanwhile, other metals are moving more wildly: Reuters noted that silver briefly strengthened to around $86, with platinum and palladium also rising, indicating that position rotation in precious metals is still ongoing after the major sell-off.
Source: Newsmaker.id
