The change in trend began on January 29, when gold futures on the CME reached a record high of $5,626.8 per ounce. However, by the end of trading, they had fallen to $5,126, marking the most notable intraday change of this year.
Today, the decline continued: the cost of futures decreased by more than 7 percent, reaching $4,959 for the first time. Experts, including analysts from Reuters, attribute this crash to mass profit-taking by investors who decided to lock in their earnings after reaching record levels.
Additional pressure on gold prices came from the strengthening dollar and uncertainty regarding the future leadership of the U.S. Federal Reserve. KCM's chief trading analyst, Tim Waterer, noted that the market reacted to expectations of news about the nomination of a new Fed chair, prompting some investors to reassess their positions in safe-haven assets.
At the time of writing, the price of the April futures is $5,128.5 per ounce, which is 4.76 percent lower than the closing level of the previous trading session.
