Gold Prices Plummet Nearly 2% Amid Profit-Taking Pressure
World gold prices took an unexpected turn downward on August 14, plummeting nearly 2% and dropping below the $4,400 per ounce mark. This sharp decline came after a series of strong increases, with prices hitting a two-month high just before the downturn.
The sudden drop in gold prices was attributed to profit-taking pressure, as investors reassessed their positions amid increasing uncertainty over the Federal Reserve's interest rate outlook. As of 8:55 am Vietnam time, spot world gold prices had fallen by $86.88 per ounce, or 1.97%, to $4,319.75 per ounce.
The decrease in gold prices was not limited to spot markets, as December gold futures contracts also fell by 1% to $4,376.25 per ounce. Other precious metals, including silver, platinum, and palladium, also saw declines of 0.91%, 0.63%, and 0.63%, respectively.
According to Christopher Wong, a strategist at OCBC, the macroeconomic context has become more positive for gold, but investor holdings and technical momentum are less favorable after a strong recovery. Wong noted that the risk of adjustment and accumulation is still present around current price ranges.