Gold Wavers Near $4,000
Gold prices hovered around $4,000 per ounce on Friday, after surging 2.4% the previous day. The market is still weighing the US-China trade truce, which hasn't addressed concerns about long-term competition. Gold is headed for its second weekly decline and is already down about 9% from its record high above $4,380 on October 20, as hopes for a Fed rate cut diminish.
Fed Chairman Jerome Powell's remarks that a December rate cut is "not guaranteed" have kept the dollar strong and pressured gold. Outflows from gold-backed exchange-traded funds (ETFs) have also reduced the rally's support, with holdings falling for nearly a week.
Some analysts believe the combination of the Fed's "hawkish cut," the US-China trade pause, and ETF outflows are triggering a correction. Westpac analyst Robert Rennie even said gold could test the $3,750 area if the pressure persists.
Despite the correction, gold is still up more than 50% since the start of the year, supported by hedging demand and central bank buying. According to the World Gold Council, central bank gold purchases in Q3 rose 28% compared to Q2. By midday in Singapore, spot gold was last trading around $3,996, while silver weakened slightly and platinum and palladium strengthened slightly. (asd)
Source: Newsmaker.id
