The shift in trend occurred on January 29, when April gold futures on the CME reached a record $5,626.8 per ounce, but by the end of the trading session, they fell to $5,126. This movement became the largest intraday fluctuation of the current year.
Today, prices continued to decline: contracts fell by more than 7 percent and for the first time dropped to the level of $4,959. Experts, including analysts from Reuters, attribute this sharp decline to active profit-taking by investors after reaching record levels.
The strengthening of the dollar and uncertainty regarding the appointment of new leadership at the U.S. Federal Reserve have also put pressure on the market. As Tim Waterer, chief trading analyst at KCM, emphasizes, the market is reacting to rumors about a potential candidate for the new head of the Fed, prompting some market participants to reassess their positions in safe-haven assets.
At the time of writing, the price of the April futures stands at $5,128.5 per ounce, which is 4.76 percent lower than the closing of the previous trading session.
