Gold prices retreat from fleeting record highs

Gold hit dizzying heights Monday before bears clawed back control, but the precious metal still holds above $2,000 as bulls and bears face off.

Berto Tordecilla

Berto Tordecilla

This news article is older than 30 days.

Gold prices saw high volatility on Monday, with the precious metal briefly reaching an all-time high of $2,135 an ounce in early trading before retreating later in the day. However, prices managed to settle above the $2,000 level. The precious metal continues to nurse losses Tuesday morning as bears regain control.

By 10:00 GMT spot gold was trading at $2,026.

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The initial surge to record peaks was driven by reduced hawkish signals from the Federal Reserve, which led to increased expectations for earlier interest rate cuts. Geopolitical tensions arising from attacks on US vessels and a prominent Peru gold mine also boosted safe-haven demand. However, prices could not sustain those lofty levels.

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Key upcoming risk events that could determine future price direction include the November jobs report and upcoming inflation data. For now, gold seems destined for listless consolidation barring any renewed geopolitical or economic shocks.

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