Gold retreats after rallying to fresh record highs
Gold prices slipped on Tuesday, retreating to around $3,800 an ounce after setting a new record earlier in the day.
The decline came as traders closed out a volatile month marked by successive all-time highs, largely driven by concerns over a potential U.S. government shutdown, News.Az reports, citing Bloomberg.
Bullion retreated to about $3,800 an ounce after reaching a fresh record earlier on Tuesday, as European stocks and US equity futures also slipped. The precious metal jumped more than 10% this month.
“Following a non-stop rally throughout September, I suspect we are seeing some end-of-month profit taking,” said Ole Sloth Hansen, commodity strategist with Saxo Bank A/S. “I also suspect Chinese traders are involved, basically reducing bets ahead of their Golden Week.”
The deadlock in Washington is just the latest turmoil boosting gold’s appeal as a safe haven, along with concerns about the economic impact of President Donald Trump’s trade wars and geopolitical tensions. Bullion has soared about 45% this year, on track for the biggest annual gain since 1979.
On Monday, a meeting between top congressional leaders and Trump ended without a deal on the government’s short-term funding. That’s fanned fears of a shutdown that could hinder the release of economic reports — depriving investors of crucial data needed to assess the US economy.
Demand for gold from central banks and a resumption of interest-rate cuts by the Federal Reserve have also supported prices. Goldman Sachs Group Inc. and Deutsche Bank AG see room for the rally to continue.
Spot gold fell to $ an ounce as of 10:53 a.m. in London. The Bloomberg Dollar Spot Index edged lower. Silver, palladium and platinum all fell sharply
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