Gold has retreated steeply since last week as global stock markets experienced a relief rally amid signs of a de-escalation in the global trade war, particularly between the United States and China.
Both spot gold and gold futures fell roughly 6.5% from their all-time highs reached last Tuesday. Investors may have started taking profits from the precious metal due to diminishing haven demand. According to strategists at Barclays Plc, the gold rally is running ahead of fundamentals and appears technically stretched following the recent surge. Meanwhile, Bloomberg reported that hedge funds have cut their net long futures and options positions on gold to a more than one-year low.
