GLD gold ETF remains on an uptrend even after easing from the fresh all-time high it hit at the start of the week. On the one hand, the profit-taking mode has kicked in following the overheating of the gold market. However, dip-buyers seeking exposure have curbed the price decline.

Despite the expected corrective pullbacks, gold price strong fundamentals validate its path to new heights. As has been the case in recent months, geopolitical and economic uncertainties have fueled precious metals’ safe-haven demand. At the time of writing, fear defined the mood in the broader financial markets at a fear & greed index of 29.  

Dip-buyers jump on corrective pullback

Gold price recently hit a new milestone by hitting and surpassing $4,000 an ounce. To date, it has reached 50 new record highs; surging by over 60% YTD. Indeed, the historic move from $3,500 to $4,000 took just slightly over one month as its safe-haven appeal skyrocketed.

While it is still above the once evasive zone of $4,000, the long-awaited correction appears to have kicked in. Early on Wednesday, gold price dropped to a one-week low; hitting that crucial support level before bouncing back. The easing saw it leave the overbought territory, where it has been operating in since the start of September. At the same time, the GLD gold ETF, which tracks the performance of the bullion, pulled back from the fresh all-time high it hit on Monday to trade at a level last recorded a week ago. 

Even with the easing, gold price continues to trade above the crucial resistance-turn-support level of $4,000 as the pullback attracts dip-buyers. Notably, not all investors traded the gold rally. This means that some buyers have been keenly waiting for a price setback to enter the market and get exposure. 

From this perspective, the path to $5,000 an ounce is still valid. Amid the persistent economic and geopolitical uncertainties, expectations on US interest rate cuts as well as strong investment demand from both individuals and institutions is set to bolster GLD gold price and the broader precious metals market. However, corrective pullbacks are expected with each new level. 

GLD Gold ETF Technical Analysis

GLD ETF chart | Source: TradingView GLD gold price eased by about 3% on Tuesday to trade at a one-week low in response to gold’s corrective pullback. The easing comes after the 7-week overheating that had the asset remain in the overbought territory. 

On Monday, the GLD gold ETF hit a new all-time high with the RSI at 80. With the activation of the profit-taking mode, the technical indicator eased to 57 as at the time of writing.

However, the bulls remain in control as the gold ETF holds steady above the 20-day EMA. In the immediate term, the range between the short-term MA at $370 and the support-turn-resistance level of $385 will be worth watching. On the flip side, a further pullback may activate the lower support zone of $360 before the entry of new buyers prompts a rebound.

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