After the gold price rebounded to a new high, traders took profit.

On October 31st, according to the data from Jin10, the gold price pumped to a new high, and some traders took profits, causing the gold price to pull back. The gold price once dropped by 2%, reaching a low of $2731. Prior to this, the United States released strong economic data, which increased the possibility of the Federal Reserve cautiously cutting interest rates in the coming months. In addition, PCE data showed an overall inflation rate of 2.1%, the lowest level since early 2021, slightly higher than the Central Bank’s target of 2%. Before today’s decline, the gold price has soared more than one-third this year, boosted by Central Bank buying and safe-haven demand due to the Middle East and Ukraine conflicts. The recent rally has pushed the 14-day relative strength index of gold above 70, which may indicate that the market is overbought. The U.S. presidential election has also brought uncertainty, highlighting the role of gold as a safe-haven asset. Ole Hansen, Head of Commodity Strategy at Saxo Bank, said that the election on November 5th may cause a pullback of more than $100 in the gold price.