Gold Ends Record-Breaking Rally with First Weekly Loss in Ten

Core Insights - Gold is experiencing a correction after a nine-week winning streak, driven by a reassessment of its recent rally which had pushed prices into overbought territory [1] - A softer-than-expected US inflation report has reinforced expectations for further monetary easing by the Federal Reserve, benefiting gold as it pays no interest [1] - The market is closely monitoring US-China relations, with a potential deal between President Trump and Xi Jinping that could alleviate geopolitical tensions and impact demand for gold [2] Price Movements - Gold prices reached an all-time high of $4,381.52 per ounce in mid-August but saw a significant drop as investors took profits [3] - Spot gold fell 0.4% to $4,108.27 per ounce, while silver, which had previously reached a record above $54 an ounce, is on track for a weekly loss of over 6% [6] Market Dynamics - The recent slump in gold prices coincided with a large outflow from gold-backed exchange-traded funds, marking the biggest single-day decline in tonnage terms in five months [3] - Central-bank buying and the debasement trade have supported gold prices, which are up approximately 57% this year [4] - The next key resistance level for gold is near $4,148, with a break above $4,236 needed to confirm a return of upside momentum [4] Other Precious Metals - Platinum prices spiked, showing significant tightness in the market, with premiums over New York futures exceeding $70 per ounce [5] - Lease rates for platinum have surged, reflecting market dynamics similar to those seen in silver following a liquidity crisis earlier in the month [5]