GoldĀ prices extended declines on Wednesday, following their steepest daily fall since 2020 in the previous session, after an initial recovery gave way to renewed selling with investors locking in profits and a stronger dollar adding pressure.
SpotĀ goldĀ was down 1.4% atĀ $4,067.31Ā per ounce, reaching a near two-week low, after rising as much asĀ $4,161.17Ā earlier in the session.Ā U.S.Ā goldĀ futures for December delivery fell 0.7% toĀ $4,081.30Ā per ounce.
TheĀ U.S.Ā dollar index hovered near a one-week high, making dollar-priced bullion more expensive.
Bullion prices fell 5.3% on Tuesday, after notching a record high ofĀ $4,381.21Ā in the preceding session. Prices have gained 54% so far this year, supported by geopolitical and economic instability,Ā U.S.Ā rate-cut expectations, and robust ETF inflows.
"Strong gains that we saw in recent weeks meant that from a technical perspective,Ā goldĀ prices had entered the overbought territory and this led many traders to close positions in order to lock in profits," said ActivTrades analystĀ Ricardo Evangelista.
On the technical front,Ā goldĀ is supported by the 21-day moving average atĀ $4,005.
Investors are awaiting theĀ U.S.Ā Consumer Price Index (CPI) report, due on Friday, which could offer insights into theĀ Federal Reserve'sĀ trajectory for rate cuts.Ā Gold, a non-yielding asset, tends to benefit in low-interest rate environments.
A Reuters poll of economists suggests the Fed will lower its key interest rate by 25 basis points next week and again in December.
Meanwhile, a planned summit betweenĀ U.S.Ā PresidentĀ Donald TrumpĀ and his Russian counterpartĀ Vladimir PutinĀ was put on hold on Tuesday, while uncertainty surrounds a possible meeting between Trump and Chinese PresidentĀ Xi Jinping.
"We are still in an era that is fraught with uncertainties, and that will most likely mean that any substantial dips... will generate fresh buying interest," StoneX analystĀ Rhona O'ConnellĀ said.
In other metals, spot silver dropped 0.9% higher toĀ $48.28Ā per ounce. It slipped 7.1% on Tuesday.