Gold prices witnessed a wild ride on August 5, staging a dramatic rebound after a significant pullback earlier in the day.
During the morning session in Vietnam time, spot gold traded steadily around $3,380 per ounce, showing a slight downward trend. However, in the evening (Vietnam time), gold suddenly plunged, losing $25 per ounce within a few hours to reach $3,350 per ounce by 6:30 p.m.
But in a surprising turn of events, the precious metal staged a sharp rally, surging to $3,390 per ounce, representing a gain of approximately $40 per ounce. The buying momentum emerged as investors seized the opportunity to scoop up bargains following the downward correction.
Additionally, a broad-based decline in the US stock market bolstered safe-haven assets like gold and silver. The US Dollar Index, representing the greenback’s strength against a basket of currencies, eased slightly from its earlier high, further boosting demand in the precious metals market. Renowned institutions, including Morgan Stanley, Deutsche Bank AG, and Evercore ISI, have warned of an impending correction in the S&P 500 index over the coming weeks and months. These forecasts follow a robust market recovery from April’s lows, which propelled stock prices to record highs last week.
Parag Thatte’s team at Deutsche Bank believes a mild correction in equity markets is long overdue. Historical data indicates that September and October are typically volatile months for stock market investors.
According to Kitco News
Gold Prices Edge Higher Ahead of Trump’s Fed Chair Announcement
The gold price is caught in a tug-of-war between conflicting factors, according to market analysts.
Gold Prices Maintain Uptrend Amid Fed Rate Cut Expectations
The price of gold surged on Friday after a disappointing jobs report from the U.S. Labor Department. The report, which fell short of expectations, revealed a sluggish jobs market with a mere 132,000 non-farm jobs added in July. This prompted a rush to safe-haven assets, with gold leading the charge.
The Golden Boom: Gold Prices Soar as US Dollar Plunges Post-US Jobs Report
“Gold prices surged to a one-week high during Friday’s session. This upward momentum was driven by a worse-than-expected non-farm payrolls report, which painted a grim picture of the labor market’s health.”
Gold Prices Dip on Monday, but Short-Term Outlook Remains Positive
The outlook for gold prices is looking brighter, with the precious metal poised to reclaim the $3,400/oz mark. This is according to market analysts who foresee a short-term boost for the commodity.
The Golden Rush: When Rings Go on a Rampage
The gold market witnessed a significant downturn during today’s trading session, with prominent dealers slashing prices for gold bars and jewelry.
