Gold Prices Retreat Sharply from Records on Dollar Rebound and Profit Taking

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Technical Correction

After an accelerated run to over $5,100, the metal was technically overbought. The failure to hold the $5,100 level triggered algorithmic sell orders, flushing out weak long positions.

Dollar Strength

A reassessment of global economic data has put a bid back under the dollar, making gold more expensive for foreign buyers and cooling the immediate 'flight to safety' demand.