The international spot gold price continued its short-term decline and temporarily broke below the $4,500 per ounce level.
At around 2:50 PM on the 2nd, the spot price of gold fell below $4,500 during the session. While it has since rebounded slightly, volatility remains high. Gold is currently trading at $4,558.14 per ounce, down 6.97% from the previous trading day.
This correction comes just days after the all-time high. Gold prices reached a record high of $5,598.75 per ounce on January 29th, but then plummeted by nearly $1,100 in just three trading days, effectively giving up a significant portion of the gains in a short period of time.
The market is interpreting the recent surge as a simultaneous release of accumulated overheating. Analysts attribute the decline to a concentration of short-term profit-taking and the liquidation of leveraged positions during periods of heightened volatility.
However, views on the medium- to long-term trend are mixed. Global monetary policy uncertainty, geopolitical risks, and a preference for real assets are still cited as structural support factors for gold prices. However, some argue that it's difficult to rule out the possibility of a short-term surge followed by a price discovery process.
The gold market is expected to remain in a period of high volatility, correction, and directionality exploration for the foreseeable future. Changes in supply and demand and the realignment of the macro environment, rather than short-term price movements, are emerging as key variables that will determine future trends.
