Gold's Strength Fades After Setting a New Record at $4,601
Global gold prices pared their gains in trading this morning after previously setting a new record high at $4,601 per ounce. The precious metal fell and traded around $4,567, as investors took profits following the sharp rally in recent sessions.
This decline is considered a reasonable technical correction, considering that gold has been moving in a strong uptrend and has reached overbought territory. Some market players chose to secure profits near all-time highs, triggering short-term selling pressure.
From a fundamental perspective, sentiment toward gold remains relatively positive. Demand for safe-haven assets remains strong amidst global uncertainty and persistent geopolitical dynamics. Furthermore, market expectations for a Fed interest rate cut this year, the dispute between Trump and the Fed, and political tensions in several regions remain key supporting factors.
However, gold's movement today was also influenced by the relatively stable US dollar and fluctuations in US government bond yields. These conditions restrained gold's gains and opened up room for a limited correction after setting a new record.
Technically, the 4,600 level has now become a strong resistance area, while the 4,550–4,530 area is being monitored as the nearest support area. As long as the price can hold above this support zone, gold's medium-term bullish trend is considered intact, with the current correction being more of a healthy consolidation.
Market participants are now awaiting the next catalysts, including the release of US economic data and global geopolitical developments, which could potentially determine whether gold will retest its record high or continue its consolidation phase in the near term.
Source: Newsmaker.id
