Precious metals dip on Monday

Precious metals retreated on Monday after a sharp rally, as profit-taking and easing geopolitical tensions weighed on demand for havens. Silver hovered near $80 per ounce, and gold slipped from record highs.

Spot gold fell 0.4 per cent to $4,512.30 per ounce by 0426 GMT, after touching a record $4,549.71 on Friday, while February US gold futures eased 0.4 per cent to $4,535.10. Spot silver rose 0.7 per cent to $79.68 but pulled back from an intraday all-time high of $83.62.

Markets pared gains after signs of progress in talks between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy raised hopes of a potential peace deal, reducing demand for haven assets. Analysts also pointed to profit booking after an outsized rally across the complex.

Silver has surged 181 per cent year to date, outperforming gold on tight supply, low inventories, and strong industrial and investment demand, reinforced by its designation as a critical US mineral. Gold has gained 72 per cent so far this year, driven by expectations of further US rate cuts, geopolitical risks, robust central bank buying, and rising exchange traded fund holdings.

Traders continue to price in two US rate cuts next year, with attention turning to the Federal Reserve’s December meeting minutes for policy signals. Non-yielding assets such as bullion typically benefit from a lower interest rate environment.

Elsewhere, spot platinum slipped 1.5 per cent to $2,421.35 per ounce after hitting a record $2,478.50, while palladium dropped 6 per cent to $1,807.59.

Attribution: Reuters