Retail & Central Bank 'Dip-Buyers' Emerge As Gold Drops Below $4000

According to MKS Pamp SA, gold was overbought and due for a correction, which occurred recently. Despite the price drop, a new wave of buyers has emerged, including retail investors and central banks. Retail investors globally, including those in Bangkok, Singapore, and the US, are using the price dip as an opportunity to buy gold. Dealers are reporting high demand and, in some cases, struggling to keep up with bargain hunters. Central banks, such as South Korea's, are considering increasing their gold reserves for the first time in over a decade. The Bank of Korea will monitor market conditions to determine the timing and size of potential purchases, despite past criticism for buying before a price slump. Analysts largely remain bullish on gold, anticipating that dip-buying from central banks and physical buyers will support prices. JPMorgan Chase & Co. expects dip buying to keep reversals relatively shallow.. The future trajectory points towards consolidation and a more measured bullish trend, according to MKS Pamp SA. This renewed interest in gold may be driven by expectations of the next wave of global liquidity.