Gold Near Record High, Will It Break Again or Correct?
Gold prices (XAU/USD) remained flat in the European session this Wednesday, remaining near all-time highs. Strong expectations that the Federal Reserve (The Fed) will cut interest rates this month have curbed the US dollar's strength, thus providing a key driver for gold as a non-yielding asset. Global trade uncertainty has also strengthened gold's appeal as a safe haven.
However, gold's gains remain limited. The overbought market has made market participants reluctant to add new long positions. Many traders are opting for caution, awaiting the release of US Nonfarm Payrolls (NFP) employment data next Friday, which is believed to provide clearer direction regarding the Fed's interest rate policy.
In addition to the NFP, the market is also focusing on the JOLTS Job Openings data, which will be released earlier. This data has the potential to provide additional signals about US labor market conditions and could trigger short-term gold price movements. However, the direction of the movement will still depend on the NFP results.
With gold remaining near its record high, analysts believe the precious metal still has the potential to strengthen further if US data confirms the Fed's move to cut interest rates. Conversely, if the data surprises with stronger results, gold could face a temporary correction. (ayu)
Source: Newsmaker.id
