Hello fellow Traders, let's dive in and analyze today's gold price movement!
Yesterday, after reacting to unexpected news, gold suddenly reversed and dropped in price. The precious metal is currently wrapping up its trading session with prices fluctuating around $3,023, down more than 200 pips compared to the previous session.
Gold lost over 1% on Friday, pressured by a strengthening US dollar and profit-taking activities. The USD index rose by 0.2%, reaching a two-week high, making gold – priced in the greenback – more expensive for buyers.
That said, for the past three consecutive weeks, geopolitical and economic uncertainties, along with expectations of rate cuts from the US Federal Reserve, have supported gold’s upward momentum. Gold, traditionally seen as a safe-haven asset during times of geopolitical and economic turmoil, tends to surge in low interest rate environments. It has already marked 16 record highs this year, reaching an all-time high of $3,057 on Thursday.
The market is currently taking a brief pause. Some profit-taking at these price levels and a strong USD have led to a short-term pullback in gold. However, this correction is considered healthy, and the bullish trend remains intact. Concerns over trade and geopolitical risks continue to be the main driving forces behind gold's strength.
Yesterday, after reacting to unexpected news, gold suddenly reversed and dropped in price. The precious metal is currently wrapping up its trading session with prices fluctuating around $3,023, down more than 200 pips compared to the previous session.
Gold lost over 1% on Friday, pressured by a strengthening US dollar and profit-taking activities. The USD index rose by 0.2%, reaching a two-week high, making gold – priced in the greenback – more expensive for buyers.
That said, for the past three consecutive weeks, geopolitical and economic uncertainties, along with expectations of rate cuts from the US Federal Reserve, have supported gold’s upward momentum. Gold, traditionally seen as a safe-haven asset during times of geopolitical and economic turmoil, tends to surge in low interest rate environments. It has already marked 16 record highs this year, reaching an all-time high of $3,057 on Thursday.
The market is currently taking a brief pause. Some profit-taking at these price levels and a strong USD have led to a short-term pullback in gold. However, this correction is considered healthy, and the bullish trend remains intact. Concerns over trade and geopolitical risks continue to be the main driving forces behind gold's strength.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.