After unprecedented surge, gold finds temporary resistance at record levels

The remarkable increase in the gold prices came to a temporary halt on Tuesday as investors locked in gains following the US Federal Reserve rate cuts. Spot gold edged down to 0.3 per cent at $4,340.29 per ounce, easing slightly from the unprecedented peak on Monday.

Investors have priced in two rate cuts among which one is expected this month and the another in December based on the CME FedWatch Tool. With an unexpected fall in prices, gold remains a strong asset. As analysts suggest that there are major falls expected but gold remains maintaining its upward growth, rising prices significantly.

Highlighting the ornament that dominates the market, KCM Trade Chief Market Analyst Tim Waterer said, “Profit-taking moves and an abating of safe-haven flows combined to just take the edge off the gold price today… any pullbacks on gold will be viewed as buying opportunities whilst the Fed remains on their current rate-cutting trajectory."

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The market focuses on the US inflation data, due to the ongoing government shutdown causing delay. Silver is also hitting records high, but retreated 1.6 per cent to $51.64 per ounce. The unprecedented growth in the prices of silver helped the market to flourish making it profitable. Platinum slipped 0.7 per cent to $1,627.62 while palladium gained 0.5 per cent to $1,503.17.