The trend shift began on January 29, when April futures on the CME reached a record of $5,626.8 per ounce. However, by the end of trading, they had dropped to $5,126, marking the most significant intraday fluctuation of the year.
Today, the decline in prices continued: the value of contracts decreased by more than 7 percent, falling for the first time to the level of $4,959. Analysts, including experts from Reuters, attribute this drop to mass profit-taking by investors who quickly reacted to the record levels.
The strengthening of the dollar and uncertainty regarding the future leadership of the U.S. Federal Reserve have also put pressure on the asset's value. KCM's chief trading analyst, Tim Waterer, notes that the market reacted to expectations of news about candidates for the next head of the Fed, leading to changes in investors' 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.
