Gold Retreats from Record
Gold prices fell slightly in the Asian session on Thursday (October 9th) after setting a new record the day before. News of progress on the Israel-Hamas peace deal dampened demand for safe-haven assets, triggering profit-taking and halting a four-day rally.
Despite the correction, underlying sentiment was still supported by expectations of Fed easing this year. Hopes of an interest rate cut curbed the US dollar's strength, limiting gold's decline. Previously overbought market conditions also prompted market participants to opt for short-term rebalancing.
On the other hand, political uncertainty in the US related to the government shutdown also dampened interest in the dollar. The combination of a subdued dollar and the prospect of lower interest rates provided a cushion for gold prices, even as the "safe-haven" impulse eased due to positive news from the Middle East.
The next focus will be on Fed Chairman Jerome Powell's speech for clues on the pace of interest rate cuts. Market participants will want confirmation on whether gold's rally has reached a temporary peak or will continue if dovish signals strengthen and the dollar weakens again. (ads)
Source: Newsmaker.id
