Bangkok: YLG Bullion Futures Co., Ltd. has advised investors to consider purchasing gold again if its price remains above the $4,000 to $4,040 range. This recommendation follows a significant downturn in the gold market.

According to Thai News Agency, the recent decrease in gold prices marks the largest daily drop in five years. Mr. Warut Rungkham, Director of Analysis at YLG Bullion Futures Co., Ltd., highlighted that the price of gold fell by $230.85, equivalent to a 5.3% decline. This drop was attributed to profit-taking activities and technical selling pressure, as the price failed to surpass its record high of $4,380. The decline triggered a wave of selling pressure, leading investors to close long positions and sell to meet collateral demands.

The strengthening of the US dollar, following the yen’s dip to a one-week low, further impacted gold prices. The yen’s weakening was linked to the election of Japan’s new prime minister, Shamae Kakaichi, who supports accommodative monetary policies. Investors anticipate that the Bank of Japan will maintain interest rates this month. Additional pressure on gold came from rising risk assets, fueled by hopes for an end to the 20-day US government shutdown and optimism surrounding President Trump’s potential trade deal with China.

YLG Bullion’s investment strategy suggests buying gold if its price does not fall below the $4,000-4,040 range, with a cut-loss strategy if it dips beneath $4,000. The recommendation also advises selling to make a profit if the price does not exceed $4,130. If the price surpasses $4,380, investors are encouraged to delay selling until the next resistance level is reached.