Gold prices experienced a significant downturn on Thursday, continuing losses after the metal’s most substantial single-day drop in over a decade. This decline marks a sharp reversal of a rally that had seen gold increase by more than 26 per cent since early September, according to ANZ Research.
The primary driver behind the sell-off is profit-taking, following the period of strong gains. Additionally, easing tensions in global trade have further diminished the demand for gold as a safe-haven asset, contributing to the downward pressure on prices.
Despite the slump in gold prices, the wider precious metals market demonstrated strength. Silver, platinum, and palladium each closed higher on Thursday. This suggests that investors are still seeking diversification within the precious metals sector, even as gold experiences a period of decreased momentum.
As of the latest trading update, gold was trading at approximately $US4100 per ounce.