Opinion: The 21-day moving average of gold may serve as short-term support

PANews February 3 News, Matrixport today released a chart indicating that gold, after a rapid rally, has pulled back to near the 21-day moving average, which may serve as support in the short term. This round of correction is mainly influenced by market expectations that Kevin Warsh may be nominated as Federal Reserve Chair, with his hawkish stance interpreted as a tightening signal.

Nevertheless, Matrixport believes that amid the ongoing expansion of U.S. debt, the demand for gold allocation still has support. This correction primarily serves to digest gains and release profit-taking, potentially providing a new opportunity for positioning in gold and silver, and does not change the long-term bullish outlook on gold. Since gold prices fell below $2000 per ounce in 2023, Matrixport has remained bullish on gold and views this correction as a strategic entry point.