“What we may be seeing now is a small correction after such a large move over a prolonged period (in gold and palladium),” said Craig Erlam, senior market analyst at OANDA.
Some key stocks in stock indices rebounded as investors began to take advantage of low prices, following the recent sell-off sparked by fears over harsh Western sanctions on Russia for invading Ukraine.
Crude oil prices, whose strength has fueled inflation fears and polished gold’s appeal as a hedge against rising costs, also fell on Wednesday.
Gold prices may show a technical resistance threshold at current high levels and then pull back to around $1,930/oz, leading to price consolidation in a range between $1,930 and $2,075. an ounce, said Michael McCarthy, chief strategy officer at Tiger Brokers in Australia.
Among other precious metals, palladium, used by automakers in catalytic converters, fell 3.7% to $3,063.19 an ounce, after hitting a record high of $3,440.76 on Monday on fears of disruptions in the supply from the main global producer, Russia.
The recent volatility in precious metals can be considered normal as commodities no longer follow fundamentals or industrial demand, Natixis analyst Bernard Dahdah said.
Meanwhile, spot silver fell 1% to $26.13 an ounce; while platinum lost 3.5% to $1,113.43 an ounce.
By Bharat Gautam, from Reuters agency
Source: Ambito
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