Gold prices continued to decline today by almost 10 $/oz from their peak as profit-taking could drive a correction. The dollar stabilized, and the 10-year Note yield hovered around 4.2%, drawing investors away from gold to a certain extent. Gold could remain exposed to U.S. economic data after expectations moved toward a less aggressive Federal Reserve rate-cutting cycle than anticipated. A slower pace of rate cuts could be detrimental to gold. We see solid support for gold around the $2,714 level and anticipate that it will maintain its upward momentum, provided this price level holds steady.

Despite these short-term fluctuations, gold’s upward momentum remains strong, supported by geopolitical tensions in the Middle East and concerns about a broader conflict. These factors continue to support gold’s appeal as a safe haven, along with uncertainties surrounding the upcoming U.S. election, particularly regarding a potential Trump victory. Anticipated easing by major central banks is also contributing to the demand for the precious metal. Next week, the market will be attentive to key U.S. economic data that could impact sentiment and expectations for the Fed’s rate-cutting path, which may introduce some volatility to the gold market.