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Trump speaks about China, gold falls sharply: losses of nearly 6%
Gold prices fell 5% during trading on Tuesday, October 21, as investors booked profits after the yellow metal hit a new record high in the previous session, driven by expectations of a US interest rate cut and increased demand for safe havens.
Spot gold fell 5% to $4,134.19 per ounce, paring its 6.3% loss, its worst daily performance since April 2013, after hitting a record high of $4,381.21 on Monday.
US gold futures for December delivery also fell 4.84% to $4,148.30 per ounce.
“Profit-taking and a decline in safe-haven flows have limited gold’s rally today,” Tim Waterer, senior market analyst at KCM Trade, told Reuters. “Any pullbacks will be seen as buying opportunities as long as the Fed maintains its current rate-cutting stance.”
Waterer added, “The current rally in gold prices still has room to run unless U.S. consumer price index data, due later this week, unexpectedly surprises the upside.”
The data, due on Friday after being delayed due to the U.S. government shutdown, is expected to show the index rising 3.1% year-on-year in September, according to economists polled by Reuters.
The U.S. government shutdown extended into its 20th day on Monday after the Senate failed last week for the tenth time to break the impasse. White House economic adviser Kevin Hassett said on Monday that the shutdown is likely to end this week.
The shutdown delayed the release of key economic data, leaving investors and policymakers in an information vacuum ahead of next week's Federal Reserve meeting.
