Gold Prices Slip, Is the Long Rally Starting to Run Out of Steam?
Global gold prices fell for a third consecutive day, approaching the psychological level of $4,000 per ounce as investors began to worry that the sharp rise in recent months had overheated. In Thursday morning trading in Asia, spot gold prices briefly touched around $4,090 per ounce, down nearly 6% in the last two sessions from its record high. This decline signaled "technical pressure" after a long rally since mid-August.
Analysts believe this correction is part of a natural market adjustment following a major rally that has pushed gold up about 55% so far this year. The main driving factors remain the same—concerns about a large budget deficit, geopolitical tensions, and speculation that the Federal Reserve will cut interest rates by at least a quarter point before the end of the year. Despite the decline, gold prices remain well above the crucial $4,000 level, indicating strong demand for safe-haven assets.
"After a massive rally, gold is now like a rubber band that has been stretched too far and has finally bounced back hard," said Hebe Chen, an analyst at Vantage Global Prime Pty Ltd. According to him, this decline does not signal a fundamental change, but rather a pause for a "technical reset." He added that demand for gold as a hedge against currency weakness and government debt remains strong.
Meanwhile, market players are also awaiting the outcome of trade talks between the US and China. President Donald Trump said he is optimistic about reaching a "good deal" with President Xi Jinping, although he acknowledged that a meeting is not yet certain. Amid geopolitical tensions and hopes for trade negotiations, the price of gold was last recorded at $4,095 per ounce at 8:05 a.m. Singapore time. Silver also fell after falling 7.6% in the previous two sessions, while palladium rose and platinum weakened.
Key points:
Gold has fallen three days in a row toward $4,000 — the major rally is starting to lose steam, but appetite for safe-haven assets remains strong amid global turmoil. (asd)
Source: Newsmaker.id
