Gold (XAUUSD) Price Forecast: Corrects After $5602—Can Bulls Build Base at $4744-$4428?

Core Insights - The current market rally is not comparable to the major top of 1980, despite similar chart patterns observed in speculative bubbles, particularly in commodities like soybeans [1] - The fundamentals of the current market differ significantly from those in the 1980s, where money managers had a clear negative correlation between hard assets and paper assets, unlike today's scenario where both gold and the Dow Jones Industrial Average can reach record highs simultaneously [2] Market Trends - Recent sell-offs were driven by profit-taking and sell stops, with the market correcting about 50% to 61.8% of a 90-day rally, indicating that the overall trend remains intact without major bottoms being breached [3] - There is uncertainty regarding central bank activities, with speculation that they may consider selling to buy later at more favorable prices, although their actions are typically reported with a delay [4] External Influences - The nomination of Kevin Warsh as a potential successor to Jerome Powell did not appear to trigger the recent sell-off, as the market had already reached record highs prior to this announcement [5] - A significant turn in major asset classes like commodities would typically be accompanied by a rebalancing in other asset classes such as 10-year Treasury Notes, the dollar, and stocks, but no immediate reactions were observed, warranting close monitoring for future developments [6]