TechFlow News: On February 3, Matrixport released its chart of the day, stating, “Gold experienced a pullback after its recent sharp rally, retreating to near its 21-day moving average. In the short term, this moving average may provide some support. The trigger for this correction was market reaction to Kevin Warsh’s nomination for Federal Reserve Chair. Given his historically hawkish monetary policy stance, the market initially interpreted this development as a tightening signal.
However, against the backdrop of continued expansion in U.S. government debt, gold’s allocation demand is likely still supported. Technically, this pullback appears primarily aimed at digesting prior gains and unwinding some profit-taking positions—potentially opening a fresh entry window for gold and silver. The pullback itself does not alter our bullish outlook on gold; we have maintained a bullish stance on gold since mid-2023 (when gold prices were still below $2,000 per ounce). Therefore, we view this correction more as an opportunity to add positions rather than a trend reversal.”
