Gold (GC=F) steadied on Monday after experiencing its largest one-day decline in two months, with prices holding near $2,886 per ounce. The 1.6% slump on Friday was driven by investor concerns that the metal’s record-breaking rally may have been overstretched.
The 14-day Relative Strength Index (RSI) signaled overbought conditions earlier in the week, prompting some profit-taking. Meanwhile, traders are closely monitoring the Federal Reserve’s interest rate trajectory and the potential impact of Donald Trump’s tariff threats, which many speculate are being used as a negotiation tactic. Delays and exclusions in Trump’s tariff policies have added to market uncertainty, which generally supports gold’s safe-haven appeal.
Friday’s US retail sales data, which showed the sharpest decline in nearly two years, revived market expectations that the Fed could cut rates by September—a move that typically benefits non-yielding assets like gold.
According to the Commodity Futures Trading Commission (CFTC), hedge funds and money managers cut their bullish bets on gold to a four-week low as of February 11. Despite this, gold logged its seventh consecutive weekly gain, marking its longest winning streak since 2020. Central bank buying, particularly from China, and increased demand for bullion-backed exchange-traded funds (ETFs) have helped sustain prices.
Gold hit a record high of $2,942.68 per ounce last Tuesday. As of 8:16 a.m. in Singapore, spot gold edged up 0.1% to $2,886.23 per ounce, following a 0.8% weekly gain. Meanwhile, the Bloomberg Dollar Spot Index remained steady, silver dipped, while platinum and palladium advanced.
