The price of gold tumbled as much as 3.8% on Tuesday — its biggest single-day drop in four years — as renewed optimism over US–China trade talks prompted investors to shift away from safe-haven assets.
Following a record-breaking rally in recent days, both gold and silver saw sharp declines. Spot gold was last trading around $4,205 per ounce, while silver fell as much as 5% to $49.74 per ounce.
The pullback follows weeks of strong inflows into precious metals, driven by global economic uncertainty, high government debt, and fears of inflation. Analysts said Tuesday’s decline reflects a short-term correction as sentiment improves, though underlying support for gold remains strong amid ongoing geopolitical and fiscal pressures.
David Morrison, senior market analyst at Trade Nation, says gold’s sharp fall may mark the start of a long-anticipated correction following its record-breaking run to new highs.
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.
Gold had several attempts to push above $4,400, starting last Thursday. But on each occasion, it ran into resistance around $4,380. That is pretty much what happened this morning. The big question for investors and traders alike is if this the start of a much-needed correction?
