Gold retreats after record rally, on track for biggest daily drop since 2020
Summary
Gold prices fell sharply after reaching a record high, marking their biggest daily drop since 2020 amid expectations of US interest rate cuts and better risk appetite.
Key Points
- Gold prices experienced their steepest daily decline in five years, falling 5.5% to $4,115.26 per ounce.
- Prices hit an all-time high of $4,381.21 on Monday, gaining about 60% this year due to geopolitical and economic uncertainty, rate-cut bets, and central bank buying.
- Silver prices dropped 7.6% to $48.49 per ounce, with platinum and palladium also seeing significant losses.
- Markets await the US consumer price index report for September, expected to show a 3.1% increase year-on-year, influencing expectations of a 25 basis point Federal Reserve interest rate cut.
