Gold Remains Below $4,350 - Is the Rally Not Over Yet?
Gold's rally eased slightly below $4,350/oz at the start of Friday's European session, after hitting a new record of $4,379/oz. However, the precious metal remains on track for a ninth consecutive week of gains thanks to a pro-risk-off fundamental backdrop: US-China trade tensions, geopolitical uncertainty, and the prolonged US government shutdown are keeping safe-haven inflows.
On the policy front, the market is increasingly digesting the scenario of two Fed rate cuts this year. These dovish expectations have pushed the USD lower for four consecutive days—providing additional support for non-yielding gold. Technically, overbought conditions are giving bulls a pause, but the fundamental narrative still suggests the decline is likely to be shallow: any pullback could potentially be viewed as a buying opportunity as long as the dollar and bond yields don't rebound sharply.
Source: Newsmaker.id
