Gold Prices: Correction or Trend Change?

GCAP GOLD analyst Areerath Murachai revealed that gold prices experienced severe selling pressure in the recent week, marking the most significant price correction in decades. The downturn is partially attributed to the previous rapid price increase and market response to Kevin Warsh's potential Federal Reserve chairmanship. The market is seeing a reset after quick price appreciation, with the dollar strengthening and technical indicators showing an extreme overbought condition. Areerath noted that external factors continue to influence gold prices, particularly Middle East tensions between Iran and the US, which could potentially drive gold demand as a safe-haven asset. The upcoming US non-farm payrolls data remains crucial, as it could impact monetary policy and dollar strength. Despite the sharp decline, the research team believes this is primarily a technical correction. They recommend waiting for price stabilization, with key support levels at $4,880 and $4,600 per ounce. If the price can maintain support around $4,200, there's potential for a short-term rebound to $5,200-$5,400.