TechFlow, on October 21, according to Jinshi Data, gold prices, which had been hitting record highs consecutively driven by safe-haven demand and expectations of Fed rate cuts, saw profit-taking on Tuesday, with spot gold plunging 3.8% during the session.
Nitesh Shah, WisdomTree's commodity strategist, noted: "Gold still has room to rise, but the current rally has been too aggressive, and technical pullbacks are inevitable after each new high." Geopolitical and economic uncertainty, continued central bank gold purchases, strong investment demand, and expectations of Fed rate cuts have collectively driven gold prices up 63% year-to-date. Market focus has now shifted to Friday's release of the U.S. September CPI data, expected to show a 3.1% year-on-year increase, reinforcing market expectations for a 25-basis-point rate cut at the Fed's upcoming meeting. Gold, as a zero-yield asset, typically benefits from low interest rate environments.
