monsitj/iStock via Getty Images
Gold Prices Experience Decline
Gold prices slid more than 1% on Wednesday, as investors continued to book profits from the metal’s rise to new all-time highs this week.
“It would appear the recent decline in gold is simply a technical pullback, which is to be expected after the sustained rally over the past few weeks and notching a new all-time high,” Taylor Krystkowiak of Themes ETF told Dow Jones.
Front-month Comex gold (XAUUSD:CUR) for May delivery settled -1.3% to $2,389.20/oz, the contract’s second straight loss since finding a record high earlier this week.
ETFs: (NYSEARCA:GLD), (NYSEARCA:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (BAR), (OUNZ)
Federal Reserve Meeting Impact
Gold futures extended losses after Nymex ended trading Wednesday, as the Federal Reserve meeting minutes from the April 30-May 1 session indicated concern that it would take longer than previously expected to gain greater confidence in inflation moving to 2%.
“You’re seeing some week-long liquidation, some profit taking by the shorter term futures traders; all of which is not unusual in a market that hit a record high,” Kitco analyst Jim Wyckoff told Reuters.
More on Gold and Gold Miners
Insight:
– While the decline in gold prices may seem like a setback, it is common for markets to experience technical pullbacks after a strong rally.
– Investors should pay attention to Federal Reserve meetings as they can impact the direction of gold prices based on inflation expectations and investor sentiment.
