Gold surges over 3% as dip buyers pounce on weaker USD

💡 DMK Insight

Gold’s 3% rally signals strong dip-buying interest, and here’s why that matters: After dipping below the $4,800 mark, the swift recovery indicates that traders are viewing current prices as a bargain. This could suggest a shift in sentiment, especially as economic uncertainty looms. With inflation concerns still prevalent and central banks navigating interest rate policies, gold often becomes a safe haven. If this momentum continues, watch for resistance around previous highs, which could trigger further buying or profit-taking. Additionally, a sustained move above $4,800 could attract institutional interest, amplifying volatility in related markets like silver and platinum. On the flip side, if gold fails to hold these gains, it could signal a deeper correction, so keep an eye on key support levels. For now, traders should monitor the daily close and any news impacting inflation or interest rates, as these will be crucial in determining gold’s next move.