Gold quotes decline amid profit-taking after historical peak

Gold prices showed a decline after a two-day recovery, as investors began to massively close positions to lock in profits. The precious metals market remains unstable after the January collapse, trying to find a stable support level amid new appointments in the US financial leadership. This was reported by Bloomberg, writes UNN.

Details

At the beginning of trading, the spot price of gold fell by 1.4%, briefly dropping below the $5,000 per ounce mark, after which it partially recovered. Despite the current 10% decline from the historical high recorded on January 29, the overall annual trend remains upward. Analysts attribute the January market overheating to speculative pressure, which led to anti-record rates of collapse, comparable only to the events of the 1980s.

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At the same time, key supporting factors - geopolitical tensions and active purchases by central banks - have not lost their relevance. In particular, the Central Bank of China continues to increase gold reserves for the 15th consecutive month. Other precious metals also showed negative dynamics: silver fell by 1.8% to $81.92, and platinum and palladium traded in the "red zone."

Impact of Fed personnel decisions and economic expectations

Investors are focused on the future policy of the Federal Reserve after Donald Trump nominated Kevin Warsh for the head of the agency. His appointment is expected to stabilize US monetary policy, which will directly affect the attractiveness of gold as a safe-haven asset.

This news calmed some speculators who were playing on uncertainty

They maintain optimistic forecasts for price recovery in the long term.