Gold Weakens Again, Market Awaits Fed Direction
Gold prices fell again after rising for the previous two days. This decline occurred as investors took profits in a market that remained volatile and had yet to find a clear direction following the sharp correction at the end of January. Silver also weakened.
In the Asian trading session, gold fell by around 1.4% before paring its decline and returning just above US$5,000 per ounce. The US$5,000 level is seen as a key psychological area that could potentially pose a technical challenge for selling pressure, as well as a testing ground for buying interest following high volatility.
Several analysts believe this decline reflects profit realization and adjustments, rather than an aggressive wave of new position sales. This means that the pressure does not indicate a rush for the exits, but rather a normalization of the price movement after extreme price movements.
Despite a correction of around 10% from its record high on January 29, gold remains at a higher level year-to-date. Fundamental factors supporting long-term trends—such as rising geopolitical risks, central bank buying, and investor preference for hedge assets when confidence in bonds and currencies waned—are considered to remain relevant.
Several major financial institutions are still maintaining their projections for a gold price recovery, citing strong structural pressures. Official demand is also considered solid, as reflected by the Chinese central bank's reported continued gold purchases into January, extending its consistent accumulation trend.
Looking ahead, market attention is focused on a series of US economic data this week that could potentially influence Federal Reserve policy expectations. Employment and inflation data will be key indicators, especially after President Donald Trump nominated Kevin Warsh as his candidate to lead the US central bank, which has increased market sensitivity to interest rates. (asd)
Source: Newsmaker.id
