Precious metals dropped today as investors booked profits following a blistering rally that saw prices of silver, gold, and other bullion surge to multi-year and record highs in recent sessions. The pullback came amid signals of easing geopolitical tensions and cautious positioning ahead of key central bank news.
Spot silver, which earlier in the session climbed above the $80 per ounce mark for the first time on record, retreated sharply and traded lower on profit taking and reduced safe-haven demand. After hitting an all time high near $83.62 per ounce, silver was quoted around $75.32, pulling back significantly from its peak.
Gold, traditionally a cornerstone of the metals complex, also softened after a recent stretch near record levels. Spot gold declined about 1.4%, trading around $4,470.56 per ounce after touching an all time high of $4,549.71 on Friday. Market sentiment was also influenced by signs of possible progress in diplomatic talks aimed at resolving the Ukraine conflict. U.S. President Donald Trump said he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer” to an agreement, a development that may have reduced some of the geopolitical risk premium that has buoyed bullion prices.
The pullback has been. bit more than I expected, but I think as with many record rallies we need to cool off and find a price point for consolidation. If this is just a 1 day pullback I'm a buyer going into the new year.
