Gold steadies

Gold dropped around 1% yesterday as investors rushed to dump anything of value to raise funds in response to the US tech-led sell-off. But the loss was relatively modest when put in perspective with the broader market. China’s DeepSeek released an AI assistant which is now the top-rated free application on Apple's US App Store. It has most of the functionality of rivals such as ChatGPT, but, most importantly, it was apparently produced at a fraction of the cost. This has forced investors to consider valuations across the US tech sector. Gold is a touch firmer this morning, but still below Friday’s close. Yet it remains significantly above its first area of significant support which comes in around $2,720. Gold continues to show resilience, although its reputation as the ‘go to’ safe haven asset has tarnished over the last few years. Despite this, a period of consolidation around current levels could help reset the daily MACD and give it a base from which to push higher.