This morning, gold prices briefly fell below $4,000 before rebounding to $4,020. With the midterm elections and the FOMC ahead, attention is focused on the decline in stocks and changes in where capital is flowing.
In today's trading, gold prices briefly fell below $4,000 before quickly recovering to $4,020. No major specific cause has been identified, but CTAs, considered ultra-short-term traders, have been cited as a factor moving the market.
With important events such as the midterm elections and the FOMC ahead, the gold market is expected to undergo short-term position adjustments. In addition, against the backdrop of consecutive declines in stock prices, selling equities to raise cash for investment in gold has become increasingly visible.
Medium- to long-term capital continues to remain on the sidelines, and some believe that investors are waiting for gold to fall below $4,000 before buying. Prominent strategist Mike Wilson said that gold functions as a safe haven for assets in such market conditions.