Gold Corrects Sharply: Buy the Dip or Wait?
Gold reversed course and fell sharply below $4,280/oz due to profit-taking after hitting a new record high of $4,379/oz on Friday. Despite weakening intraday, XAU/USD remained on track for a nine-week winning streak, confirming the prevailing bullish bias.
Easing US-China trade tensions also helped the US dollar recover and put pressure on gold after Trump said in an interview with Fox Business Network that his proposed 100% tariffs on Chinese goods would be unsustainable. He added that he would meet with Chinese President Xi Jinping in two weeks and that he was confident China would be fine.
On the policy front, the market has nearly priced in the Fed's 25-bps rate cuts in October and December, which strengthens gold's appeal as a non-yielding asset.
The selling pressure is profit-taking, not a change in narrative. As long as Fed cut expectations persist and macro risks are high, any pullback is likely to be limited, and the opportunity for a retest of the peak remains open.
Source: Newsmaker.id
