Gold prices remained weak as they traded below a three-week high. This selling trend continued throughout Tuesday’s Asian trading session. The behavior of the rare metal of late sets a discouraging pattern. Needless to say, analysts are missing follow-through selling from the market, which has been the defining feature of the last few days. In light of that extreme bearish sentiment, gold has not shown much conviction in either up or down direction.
During the whole Asian capitulation, gold prices continued to show their negative bias, and were unable to sustain any buying momentum. Analysts had pointed out that demand for the yellow metal had been tepid. The absence of heavy selling pressure indicates a sign of caution from traders. This has led to gold prices staying under water, killing any nascent recovery in the cradle.
Market commentators pointed out that gold’s recent price action shows a failure to take hold. The metal has languished under its recent multi-week peak, a testament to confusion among traders about what comes next. This lack of strong bearish sentiment indicates that despite traders being on guard, they are not throwing caution to the wind and aggressively liquidating their position.
As traders and investors continue recalibrating the gold market, their eyes are likely to stay glued on bigger economic cues expected to impact gold prices. The battle between inflation data, interest rates and escalating geopolitical tensions remains a focus to determining trading strategies. In such a climate, analysts advise that investors stay awake and alert to what’s happening in the market at all times.
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