Profit Taking Bites: Gold Drops 1%
After hitting an All-Time High (ATH) earlier this week $4379, global gold prices suddenly weakened in Friday morning trading. This decline occurred amid investor profit-taking and rising US bond yields.
Market data shows that the spot gold price fell to around USD 4,278 per troy ounce, a correction of around 0.8% from its previous high.
Analysts consider this morning's correction to be normal following the price surge in recent days. "After gold hit a new record, many large investors took short-term profits," said a global commodities analyst in New York.
Such technical corrections often occur after extended periods of rallying, as a form of market rebalancing.
The rise in the yield on the 10-year US government bond also put pressure on gold prices. Higher yields encourage investors to shift from non-yielding assets like gold to fixed-interest assets. Meanwhile, global investors are starting to return to the stock market as risk sentiment improves, reducing demand for safe-haven assets like gold. (asd)
Source: Newsmaker.id
