Gold is under pressure again as global markets enter risk-on mode. Signals of peace on the US-China trade front have reduced investors' need for safe haven assets, leading to a correction in gold prices after a major rally. However, this is more of a relief trade deal than a complete bearish one, as gold's annual price remains high, and government debt, currency weakness, and central bank purchases remain key drivers.

Going forward, the key focus will be on the Fed's interest rate. If the Fed cuts interest rates, this would be bullish for gold, as holding gold becomes cheaper than holding money in interest-bearing instruments. However, in the short term, gold could remain volatile if global risk sentiment is strong and funds flock to stocks and cyclical commodities rather than safe havens. So, a short-term correction is normal; in the medium term, gold still has reason to be held as a hedge. (asd)
At the time of this analysis's release, the gold price was at $4,080.
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id