(Kitco News) – Gold futures are falling back on profit taking and some scaling back of the safe-haven premium previously wound into the market on the back of the Russia-Ukraine crisis. Nevertheless, some traders and analysts are calling the pullback a “healthy” correction and pointing out that the geopolitical tensions surrounding Ukraine (not to mention new uncertain economic data coming out of China) have not gone away and could still offer some underpinnings to the market.

“Obviously, the safe-haven (buying) in gold was acute last week when the market was worried about what would happen in the Ukraine,” said Phil Flynn, senior market analyst with Price Futures Group. “It seems to be easing off a little bit because it doesn’t seem like it’s going to turn into a violent event at this point.”

He later added, “you’re seeing some profit-taking and you’re seeing some stops get hit. But I don’t think you’re seeing a major change in the trend. I think it’s just a correction after what has been an almost historic run-up in the gold market.”

Kevin Grady, president of Phoenix Futures and Options on the Comex floor, even called this correction “healthy,” saying it gives the market a chance to correct rather than shoot straight up.

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