Gold facing pressure but still open for further surgeFollowing a recent rally, the gold price met significant profit-taking pressure. Prices reached a record high of 4381, signaling an easing of US-China trade tensions.
China confirmed trade talks with the US will occur tomorrow in Malaysia alongside the ASEAN summit. However, both sides are escalating tensions pre-talks to gain bargaining power, potentially complicating a final agreement.
Meanwhile, the prolonged US government shutdown, combined with a weakened Labor Market and a lack of data, has obscured the Labor Market's current situation. This uncertainty fueled market concern and drove investors toward safe-haven assets.
Concurrently, expectations place the US CPI at 3.1% YoY, accelerating from 2.9%. This increase raises stagflation concerns in the US economy, further supporting the gold price.
Technically, XAUUSD hovers slightly above the EMA78. Both EMAs are consolidating, signaling continued flattening momentum.
However, the long-term trend remains to the upside, suggesting investors may buy the dips amid the remaining uncertainty.
