On Wednesday, gold prices dropped $16.60 an ounce, or 0.94%. They finished the day with slight losses having surged to multi-week highs earlier in the session. The shiny metal jumped out the gate with both feet, soaring to remarkable heights near $3,440 per troy ounce. According to crypto news website Coindesk, it soon faced new selling pressure that drove its price down.
Despite this latest dip, gold has been successful in keeping itself above the key level of $3,400. This resilience comes amidst a third consecutive big positive day for the US Dollar and strong rebound in US yields all along the curve. Usually, this rebound creates headwinds for gold prices. Gold’s tepid performance today is a sign of lost momentum after gold’s hot streak this year.
With gold’s losses turning modest as trade settles in this morning, traders are still tuned in to what is moving gold this week. Recent highs of $3,440 are stellar. They illustrate the volatility and the changing dynamic of the marketplace and the potential for swift change in circumstances. The strong selling pressure that’s followed these peaks indicates a suddenly very jittery investor base. All of them are probably reconsidering their stances because the economic tide is turning.
The volatility we’ve witnessed in gold prices on Wednesday is a clear picture of the tumultuous times that the commodity space has experienced recently. With it now trading above $3,400, traders are left scratching their heads with the daily loss continuing to pile up. They’re doing so in an extremely challenging environment shaped by larger economic currents.