Gold prices saw a correction yesterday after approaching the psychological level of $3,400 per ounce, a price zone characterized by historical profit-taking. The market shift was triggered by a telephone conversation between U.S. President Trump and Chinese President Xi, which alleviated some trade war concerns. Consequently, investors began pulling away from gold, opting for equities instead. Additionally, mixed U.S. economic data contributed to the market's uncertainty, with disappointing employment figures juxtaposed with slightly positive service sector data, impacting growth and inflation expectations.
Gold's price correction, after nearing $3,400/oz, reflects shifting market sentiment amid easing trade war fears between the U.S. and China, indicating a technical adjustment.
The market's inability to maintain upward momentum at this key psychological level around $3,400/oz suggests a transition into a correction phase, highlighting valuation caution.
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