Gold Prices Slide Over 1% Due to Profit-Taking Pressure

Web Desk | 2 months ago

Gold prices dropped on Monday as trading volumes remained thin, with US and China markets closed for local holidays. Traders also booked profits following Friday’s 2.5% jump. Spot gold fell 1.1% to $4,986.32 per ounce. US gold futures for April delivery lost 0.8% to $5,005.60 per ounce. Analysts noted the absence of fresh market catalysts contributed to the decline.

Tim Waterer, chief analyst at KCM, said gold gave back some post-CPI gains due to thinner trading conditions. He added that profit-taking pressured prices. The US markets were closed for Presidents’ Day, while China observed the Lunar New Year holiday. These closures reduced liquidity in global gold trading. Market participants were waiting for new triggers to support higher prices.

The US Consumer Price Index (CPI) rose 0.2% in January, following December’s 0.3% increase. Economists had forecast a 0.3% rise. Federal Reserve Bank of Chicago President Austan Goolsbee noted interest rates could decrease but services inflation remained high. Traders anticipate the Federal Reserve will hold rates at its March 18 meeting. They expect a total of 75 basis points in rate cuts this year, with the first likely in July.

Read more : OGRA Raises LNG Prices for February Across Pakistan

Spot silver fell 2.4% to $75.64 per ounce after a 3% drop earlier. Spot platinum slipped 0.8% to $2,045.11 per ounce, while palladium lost 0.7% to $1,673.52. Analysts said non-yielding metals like gold tend to perform well in low-interest-rate environments. Waterer added that a weaker dollar could push gold toward $6,000 per ounce before year-end.

Geopolitical tensions also weighed on commodities, with US military preparations for a potential operation against Iran. Officials warned that the conflict could be more serious than previous clashes. Investors monitored the situation closely, as it could influence safe-haven demand for gold. Market watchers said both economic and geopolitical developments would drive prices in the coming weeks.

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