Gold prices experienced a downturn, breaking below $4,100 per ounce and poised to end a nine-week winning streak. This decline was fueled by heavy selling pressure following recent record highs, coupled with substantial outflows from gold-backed ETFs. Despite the recent volatility, gold has maintained significant gains year-to-date, buoyed by ongoing trade tensions and geopolitical risks, while expectations of further Federal Reserve rate cuts continue to provide support. Investors are now keenly awaiting the upcoming CPI report, which could significantly impact the monetary policy outlook.
- Gold prices fell below $4,100 per ounce.
- The metal is on track to end its nine-week winning streak.
- Heavy selling pressured prices after recent record highs.
- Gold experienced its largest intraday loss in five years, dropping over 5% early in the week.
- Gold-backed ETFs saw their largest single-day drop in holdings by tonnage in five months.
- Gold remains up about 55% year-to-date.
- Trade tensions and geopolitical risks continue to support gold.
- The US imposed new sanctions on Russia.
- Expectations of two more Federal Reserve rate cuts by year-end are supportive.
- Investors are focused on the upcoming CPI report.
The overall picture suggests a market undergoing a correction after a sustained period of growth. While certain factors, such as trade disputes and geopolitical instability, continue to create a favorable environment for the asset, profit-taking and adjustments in investor positioning have led to a temporary pullback. The asset’s future trajectory will likely depend on upcoming economic data releases and the evolving monetary policy landscape.