Gold and Silver Prices: Downward Trends Continue

Sharp Drop in Gold Prices

In global markets, gold prices are experiencing a significant decline after recent record levels. Emerging positive signs of easing U.S.-China trade tensions and profit-taking by investors ahead of upcoming U.S. inflation data have put pressure on precious metals. As of Wednesday at 05:36 TSİ, spot gold continued to trade at 4,109.19 dollars per ounce, down by 0.4%. Last Tuesday, gold had lost more than 5%, marking its largest daily decline since August 2020.

Traders' Focus on CPI Data

Meanwhile, December futures for U.S. gold contracts have risen by 0.4% to 4,124.10 dollars. Matt Simpson, a senior analyst at StoneX, stated that the recent decline in the gold market is largely a technical correction. Simpson expressed, "The easing of trade tensions between the U.S. and China has led to a reversal in gold's momentum. This is a natural pullback in a market that has been hovering above the 4,000 dollar level for a long time. However, I believe we have seen the worst of the current volatility, as these declines are likely to present a new buying opportunity for investors," he said.

Silver Prices Declining

A similar decline is observed in silver prices. After nearly a 7% loss on Tuesday, silver prices are trading below 49 dollars on Wednesday. This represents the largest daily loss recorded since September 2011. Silver has fallen back to about 10% below the record levels reached last week. As a safe haven, precious metals continue to be pressured due to the increasing risk appetite of investors.

Signs of Optimism in Markets

The optimism in the markets stems from the reduced U.S.-China trade tensions and expectations that the U.S. government shutdown will come to an end. Investors are now focused on the critical U.S. inflation data expected to be released ahead of the Federal Reserve interest rate cut scheduled for next week.