Gold Futures Slide on Profit-Taking, Higher Risk Sentiment -- Market Talk
Gold futures pull back from Tuesday's all-time high. Futures are down 2.4% at $3,336.50 a troy ounce, having set a new record of $3,509.90/oz in the prior session. It was the first time gold had crossed the $3,500/oz mark.
It appears many traders were looking for this level as a signal to take profits, Trade Nation's David Morrison says in a note. The fall then accelerated on the back of U.S. President Trump's announcement that he has no intention of firing Fed Chair Jerome Powell and renewed optimism over a China-U.S. trade deal, Morrison says.
The developments lifted risk sentiment and reduced the immediate need for safe-haven exposure.
Gold could fall as low as $3,300 before demand picks up again, but it remains overbought and there is a possibility of a deeper pullback, Morrison adds.
Source: Marketwatch