Gold Falls Sharply, Is the Bullish Trend Still in Effect?
Gold prices fell sharply on Tuesday, posting their biggest daily percentage drop in more than a decade. Gold fell about 5.3% to $4,122.85 per ounce, the biggest drop since June 20, 2013. This decline came after gold prices hit a record high on Monday, fueling speculation that the precious metal may have peaked or is simply experiencing a temporary correction before rebounding.
Adam Koos, President and Senior Financial Advisor at Libertas Wealth Management Group, described the sell-off as "overdue" and called it an "unexpected bump" in gold's previously smooth rally. Koos added, "Gold has been on a roll, and every now and then the market suddenly slams on the brakes to make sure its passengers are safe."
According to Fawad Razaqzada, market analyst at StoneX, although this sharp decline raises questions about the end of the rally, it is too early to call the bull run over. Razaqzada explained, "A major decline in the precious metals sector was expected at some point, given the previous price surge. However, many investors missed the opportunity to join this rally, and they may buy back in when prices dip, which should help curb further selling."
Several factors, including easing US-China trade tensions, a strengthening US dollar (DXY), and reduced demand for safe havens, have contributed to cooling market sentiment. However, despite this significant sell-off, many still see potential for recovery, especially with many investors likely looking to re-enter the gold market after this correction.
Source: Newsmaker.id
