As the world’s best investment manager and financial market journalist, I bring you the latest insights into the recent decline in Gold prices and its correlation to technical selling pressure, profit-taking, and the strong US GDP print. But fear not, the bull run in Gold may not be over just yet!
The unexpected reaction by the market to the strong US GDP data has left many puzzled. The US GDP print of 2.8% exceeded estimates, pushing Gold towards a key support zone around $2360/oz while the US Dollar Index (DXY) struggles to close back above the 200-day MA.
Analysis Breakdown:
Reasons for Gold Price Decline: The decline in Gold prices can be attributed to technical selling pressure and profit-taking, despite the safe-haven appeal of Gold amidst global growth concerns.
Potential Bull Run in Gold: Anticipated Central Bank demand, increased demand from India, and long-term geopolitical factors suggest that the bull run in Gold may not be over yet.
US Dollar Index Situation: The US Dollar has found support around 104.00 but is struggling to break above the 200-day MA. Rate-cut bets and market expectations for the upcoming US data could influence the future movement of the US Dollar.
Overall, while the recent pullback in Gold was overdue, there is still optimism for a potential continuation of the bull run. Factors such as Central Bank demand, increased demand from India, and geopolitical shifts could play a significant role in shaping the future of Gold prices. Stay tuned for further updates on the market trends!