Gold Declines After Breaking the $4500 Per Ounce Barrier

SadaNews Economy - Gold prices recorded a slight decline on Wednesday after earlier surpassing the $4500 per ounce barrier, while silver and platinum trimmed some of their gains following a record surge that had positioned precious metals at the forefront in recent weeks.

Spot gold dropped to $4479.38 per ounce after reaching a record high of $4525.18. American gold futures for February settled slightly lower at $4502.8.

Jim Wyckoff, a senior analyst at Kitco Metals, noted that the market is experiencing some profit-taking and a technical consolidation following the recent record highs, pointing out that the low interest rate environment and global uncertainty continue to provide support for gold.

U.S. President Donald Trump stated that he would like the next Federal Reserve Chairman to lower interest rates if the markets perform well, at a time when the central bank has cut interest rates three times this year, while traders anticipate two more cuts in the coming year.

On the geopolitical front, the U.S. Coast Guard is awaiting reinforcements before a potential attempt to board a Venezuelan-linked oil tanker that has been in their sights since Sunday, according to a U.S. official.

Silver reached a record level of $72.70 per ounce before finally rising to $71.94, while Wyckoff indicated that the next upward target for gold could reach $4600 per ounce and for silver $75 by the end of the year, with technical indicators remaining in an upward trend.

Since the beginning of the year, silver prices have jumped by about 149%, outpacing gold's gains of over 70% during the same period, reflecting strong demand led by industrial applications.

Meanwhile, platinum reached a peak of $2377.50 before declining to $2220.44, while palladium fell by more than 9% to $1683.58 after touching a three-year high.

Data show that platinum and palladium, which are used primarily in exhaust systems to reduce emissions, have recorded strong gains since the beginning of the year of about 145% and over 85%, respectively, benefiting from supply shortages and trade-related factors, in addition to some investors shifting away from gold in search of alternative opportunities.