According to BlockBeats, spot gold prices surged above $4,100 during late Asian trading hours. The ongoing U.S. government shutdown and heightened geopolitical tensions have contributed to the rise in gold prices. Additionally, market expectations for further interest rate cuts by the Federal Reserve are providing support.
Traders are closely monitoring changes in trade dynamics, as gold previously faced significant selling pressure due to easing trade tensions and increased demand for the dollar. Russell Shor, a senior market analyst at Tradu.com, noted that the recent sell-off appears to be a technical adjustment, with investors taking profits after gold remained overbought since September. Despite the pullback, gold prices have risen approximately 55% this year, maintaining a strong long-term upward trend.
Profit-taking ahead of Friday's CPI data release is another factor behind the gold sell-off. The U.S. government shutdown has halted the publication of economic data, making the upcoming September CPI inflation data highly anticipated. If the data exceeds expectations, it could temporarily boost the dollar and exert pressure on gold prices.
Catherine
