Exchange prices for gold plummeted by 9.8% after rising to a new record high. On trading Thursday, January 29, April gold futures initially soared to $5626.8 per ounce, which became a historical record, and then fell to a minimum of $5126 per ounce.
On Friday, the decline in precious metal prices continued. As of 12:00 Latvian time, the price of April gold futures on the Chicago Mercantile Exchange (CME) fell by 7.39% compared to the closing price on Thursday – to $4959.56 per ounce.
Despite the correction in recent days, gold prices have been rising for the sixth consecutive month in January, Reuters reports. According to the agency's estimates, the increase in January amid heightened economic and geopolitical uncertainty could be the most significant monthly rise since 1982.
Gold fell as investors took profits after prices reached a new record high. Additionally, the correction was observed due to expectations of the announcement of a candidate for the position of Fed Chair and the recovery of the dollar, said KCM's chief trading analyst Tim Waterer.
Gold is considered a safe-haven asset, but after the price soared above $5500, it can be said that it has already "overprotected" its holders with a six-month advance. The record high level of overbought conditions for the metal led to a sharp sell-off.
