.jpeg)
Gold suffered its biggest fall for five years as it retreated from its latest record high.
The price of bullion tumbled 5 per cent to $4,120 an ounce on Tuesday having hit an all-time peak of $4,381 on Monday.
It was the largest one-day fall since 2020.
The precious metal is still up around 60 per cent this year, however, having soared on the back of geopolitical and economic uncertainty and buying by central banks as well as regular punters.
Tai Wong, an independent metals trader, said ‘the sharp jump in volatility… may encourage at least short-term profit-taking’.
He also noted that ‘silver is stumbling badly’ with the price down more than 6 per cent to below $50 an ounce following its record highs.
Traders are now awaiting US inflation figures – due on Friday having been delayed by the government shutdown – as they look for clues on the outlook for interest rates.
Gold and silver tend to benefit from lower interest rates.
David Morrison, senior market analyst at Trade Nation, said: ‘It has been a long time coming, but it looks as if gold is finally having a bit of a downside correction following its record-breaking upside run.
‘The big question for investors and traders alike is if this the start of a much-needed correction? Alternatively, is this sell-off the start of something more serious. In other words, could the top be in for gold?
‘It’s very difficult to know, and analyst speculation will centre around the shape and extent of this sell-off, as well as giving some consideration as to how long this rally has been going.’
