Gold prices were on track for their sharpest daily decline in five years on Tuesday (October 21st), as investors took profits after expectations of a US interest rate cut and continued demand for safe-haven assets pushed the precious metal to a record high in the previous session.
Spot gold prices fell 5.5% to a one-week low of $4,115.26 an ounce at 1:45 a.m. EDT (1745 GMT), the steepest decline since August 2020. US gold futures for December delivery closed 5.7% lower at $4,109.10 an ounce.
Prices hit an all-time high of $4,381.21 on Monday and have risen about 60% this year, driven by geopolitical and economic uncertainty, speculation of interest rate cuts, and continued central bank buying. "Gold prices remained bearish yesterday, but the sharp spike in volatility at the highest levels over the past week suggests caution and may prompt at least some short-term profit-taking," said Tai Wong, an independent metals trader.
The dollar index rose 0.4%, making bullion more expensive for holders of other currencies. "Improved risk appetite in the general market earlier this week is bearish for safe-haven metals," said Jim Wyckoff, senior analyst at Kitco Metals, in a note.
Citi analysts said in a note that they expect the end of the ongoing US government shutdown, as well as the announcement of a US-China trade deal, to contribute to gold price consolidation over the next two to three weeks.
Spot silver fell 7.6% to $48.49 per ounce.
"Silver is on a tear today and has dragged the entire complex down," Wong said. "We appear to have reached a short-term top at $54, and although market sentiment fluctuates below $50, silver is likely to trade sideways with substantial volatility as long as gold remains relatively stable."
Elsewhere, platinum fell 5.9% to $1,541.85 and palladium fell 5.3% to $1,417.25.
Traders await the release of the US consumer price index report for September on Friday, which was delayed due to the US government shutdown. The report is expected to show a 3.1% year-on-year increase. Markets expect the Federal Reserve to cut interest rates by 25 basis points at its policy meeting next week. (alg)
Source: Reuters
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" ...
Gold prices hit another record high, while silver held near its all-time high. This rise was driven by two major factors: the escalating Greenland crisis and turmoil in the Japanese government debt ma...
Gold prices remained near all-time highs on Tuesday, hovering around $4,670 per ounce. Demand for safe haven assets remained strong as US-European trade tensions escalated, prompting investors to refr...
Gold and silver hit new records after US President Donald Trump threatened to impose tariffs on eight European countries that oppose his Greenland plan. This situation immediately pushed investors int...
Gold price rises on Friday, poised to end with weekly gains of nearly 4% as an employment report in the US was mixed, with the economy adding fewer jobs than projected. Still, the Unemployment Rate ti...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...