Precious metals sell-off – ING
|Spot Gold prices came under significant pressure yesterday, with the market settling 5.3% lower on the day. This downward pressure has only continued in early morning trading in Asia today. The catalyst appears to be profit-taking in a market that has been hugely overbought in recent weeks, ING's commodity experts Ewa Manthey and Warren Patterson note.
Gold rises predominantly moved by ETF buying
"The scale and pace of the rally in spot Gold have been dramatic, with prices having gained as much as $1,000/oz since late August. Clearly, market participants were getting increasingly nervous over the sustainability of the uptrend. In addition, comments from President Trump that he expects a 'good deal' when it comes to trade talks with China have only added to the downward pressure on Gold."
"The move higher in Gold in recent months has been predominantly driven by ETF buying. In dollar terms, investors bought a record volume of Gold ETFs over September, while in terms of tonnage, the buying seen over the last month was the largest since March 2022."
"Other precious metals have been unable to escape the sell-off. Silver settled more than 7% lower yesterday, while Platinum and Palladium closed 5.2% and 6.1% lower, respectively."
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.