Khaberni - Gold prices experienced a sharp decline during the trading sessions this evening, Thursday, after the precious metal lost more than 5% of its value, dropping below the $5200 per ounce level, in a surprising move that came as a result of a strong wave of profit-taking following the gold reaching near record levels of $5600 at the beginning of the session.
The decline in gold occurred as selling accelerated by investors who preferred to secure their profits after the recent spikes, which strongly pressured prices in a short amount of time, especially with the increase in volatility in the precious metals markets.
In the spot trades, gold contracts declined by more than 5% to trade near the $5145 per ounce level, clearly indicating the selling pressures the yellow metal is undergoing in the recent hours.
On the other hand, the US dollar index rose by 0.27% to trade near the 96.61 point level, which increased the losses for gold, as the strength of the dollar typically pressures gold prices valued in the American currency, making the metal less attractive to holders of other currencies.
Analysts believe that the current decline in gold prices does not necessarily reflect a radical change in the long-term trend but comes within a natural corrective movement after the recent record rise, amidst investors' anticipation of the course of US monetary policy and global market movements in the upcoming period.
Gold remains a focal point of interest for investors amidst ongoing global economic concerns, yet profit-taking waves and the strength of the dollar remain key factors determining the direction of the precious metal in the short term.
