Last night, Gold saw a sharp rally, reaching a new peak at $3897/ounce – approaching the important Key Level of $3900/ounce.
However, just 2 hours later, Gold suddenly reversed with a strong correction, dropping $80 down to the $3819/ounce level. At present, it is recovering and trading around the $385x – $386x range.
This move was exactly as mentioned yesterday by Hung, that there would be strong profit-taking waves from major funds and investors when Gold climbs too high.
Evidence of this can be seen as the SPDR fund sold over 3 tons of Gold yesterday.
Nevertheless, this is still just a moderate profit-taking move since Gold has managed to hold above the $3800/ounce level, and its quick recovery indicates that current buying demand for Gold has not weakened.
Therefore, in the short term, Gold will continue to experience sudden sharp fluctuations like this, as the market has not yet determined a clear medium-term trend – whether Gold will break above $3900/ounce or fall back below $3800/ounce.
Trí Hùng
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