Gold remains at a high level around $4040, with excessive bullish sentiment, beware of a pullback
2025-10-09 15:01:49
Gold remained strong in Asian trading on Thursday, with spot gold trading at $4,025.00 per ounce, just below Wednesday's all-time high of $4,059.31. It fell as much as 1% in early trading as technical indicators showed gold had remained in overbought territory for the past month, prompting some investors to take profits.
Manav Modi, an analyst at Motilal Oswal Financial Services, said: "Profit-taking from historical highs and the ceasefire news may put pressure on gold prices in the short term."
U.S. President Donald Trump announced that Israel and Hamas had agreed to a preliminary deal to release all hostages, a breakthrough seen in two years of U.S.-Qatar negotiations on the conflict and undermining safe-haven buying for gold.
Despite this, gold has risen more than 50% this year, benefiting from global economic uncertainty, trade concerns, the Federal Reserve's policy independence and questions about U.S. fiscal sustainability.
Furthermore, geopolitical tensions and the continued increase in gold holdings by global central banks also provided solid support for gold prices. Meanwhile, silver prices approached their all-time high since 1993, while palladium rose approximately 2.3% on the day, while platinum remained slightly volatile. The US dollar index fell 0.2%, providing some support for precious metals.
Gold is consolidating near $4,040 in the short term. Technically, the RSI remains elevated, suggesting the market is still overbought and has yet to fully correct. If the price breaks through the $4,059 high, it could potentially head towards the $4,080 to $4,100 range.
Initial support below is at $4020, with further support in the $3985-3970 range. The overall trend is still bullish, but the risk of a pullback from high levels should be guarded against in the short term.
Editor's opinion:
Gold prices are fluctuating near historical highs, reflecting market caution amidst high volatility. Cooling safe-haven demand and technically overbought conditions are creating short-term pressure. However, amid expectations of global policy easing and persistent economic uncertainty, gold remains robust in the medium to long term. A stable gold price above $4,000 will provide a solid foundation for a further breakout by year-end.
Manav Modi, an analyst at Motilal Oswal Financial Services, said: "Profit-taking from historical highs and the ceasefire news may put pressure on gold prices in the short term."
U.S. President Donald Trump announced that Israel and Hamas had agreed to a preliminary deal to release all hostages, a breakthrough seen in two years of U.S.-Qatar negotiations on the conflict and undermining safe-haven buying for gold.
Despite this, gold has risen more than 50% this year, benefiting from global economic uncertainty, trade concerns, the Federal Reserve's policy independence and questions about U.S. fiscal sustainability.
Furthermore, geopolitical tensions and the continued increase in gold holdings by global central banks also provided solid support for gold prices. Meanwhile, silver prices approached their all-time high since 1993, while palladium rose approximately 2.3% on the day, while platinum remained slightly volatile. The US dollar index fell 0.2%, providing some support for precious metals.
Gold is consolidating near $4,040 in the short term. Technically, the RSI remains elevated, suggesting the market is still overbought and has yet to fully correct. If the price breaks through the $4,059 high, it could potentially head towards the $4,080 to $4,100 range.
Initial support below is at $4020, with further support in the $3985-3970 range. The overall trend is still bullish, but the risk of a pullback from high levels should be guarded against in the short term.
Editor's opinion:Gold prices are fluctuating near historical highs, reflecting market caution amidst high volatility. Cooling safe-haven demand and technically overbought conditions are creating short-term pressure. However, amid expectations of global policy easing and persistent economic uncertainty, gold remains robust in the medium to long term. A stable gold price above $4,000 will provide a solid foundation for a further breakout by year-end.
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