After reaching an all-time high of over $4380, this week's decline is related to the consequences of profit-taking amid speculative aspects.
UNN reports with reference to Investing.
Details
Gold prices fell again on Friday and are now heading for a weekly decline, the first seen this autumn.
As of the first half of the day, October 24, spot gold prices fell by 1.5% to $4062.48 per ounce. At the same time, US gold futures fell by 1.7% to $4076.41.
Gold prices could fall by more than 3% this week after reaching a record high of $4381.29 per ounce earlier in the week
It is worth recalling that gold bullion prices had been rising for nine consecutive weeks. This was facilitated by expectations of monetary policy easing and demand for safe-haven assets.
Analysts explain that the current price decline is based on factors such as "profit-taking in a market that has been extremely overbought in recent weeks."
The scale and pace of spot gold's growth have been impressive, with prices rising by $1,000 per ounce since late August. It is clear that market participants were increasingly nervous about the sustainability of the upward trend.
Among other reasons:
Traders also became cautious ahead of the delayed release of the US Consumer Price Index (CPI) for September. This index is a key indicator for forecasting Federal Reserve policy.
Recall
Prices for gold and silver fell sharply by 6.3% and 8.7% respectively, after reaching record highs last week. Shares of gold mining companies also fell.
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