Gold: Sharp reversal after stellar rally – UOB
|UOB Global Economics & Markets Research reports a steep selloff in Gold and other precious metals as AI-related risk aversion hit broader markets. They describe algorithmic trading and profit taking as factors behind the move, following a strong prior rally. The note details large percentage declines in Gold, Silver and Copper, underscoring fragile sentiment in the commodities complex.
Precious metals slump on risk aversion
"Gold plunged as concerns about AI spurred a selloff across financial markets with algorithmic traders appearing to amplify the precious metal’s sudden drop."
"Bullion fell as much as 4.1% while silver plunged 11%."
"Copper on the London Metal Exchange declined 2.9%."
"Market talks also indicated some profit taking was done amidst the precious metal’s recent stellar rally."
"Spot gold fell 3.2% to USD4,920.37/oz at NY close, silver dropped 11% to USD75.15/oz, while platinum and palladium fell and copper on the LME slid 2.2%."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.