Gold Corrects, Profit-Taking Pressures Prices
Gold prices weakened in early trading on Tuesday (February 24th), triggered by profit-taking after a rally in recent sessions.
Gold futures in New York fell around 0.7% to $5,190.50 per troy ounce, as investors locked in profits amid market volatility.
The decline was also influenced by a moderate strengthening of the US dollar, which generally puts pressure on dollar-denominated commodities because they become relatively more expensive for buyers outside the US. However, this correction occurred after gold briefly broke through $5,200 in the previous session.
Gold's previous rally was supported by increased safe-haven demand, primarily due to uncertainty over the direction of US import tariff policy and geopolitical tensions in the Middle East. Confusion surrounding President Donald Trump's tariff policy added a new layer of risk to global markets, increasing defensive interest in gold.
However, several analysts believe that gold's medium-term trend remains supported. MUFG, through analyst Soojin Kim, assesses that gold remains strong above $5,000/oz, with potential for further upside if geopolitical risks persist, the debate over the Fed's independence intensifies, and investors continue to shift some portfolios from government bonds and major currencies to hedge assets.
Source: Newsmaker.id
