Published: 2020-08-12 12:02
Last Updated: 2020-08-12 12:05
Gold prices dropped by more than 5% on Tuesday – the largest fall in a single day for seven years – as investors’ appetite for risk returned following encouraging economic numbers and hopes of new coronavirus relief package boosted the S&P 500 to near record highs.
Other precious metals also experienced a significant drop. Silver plunged by 13.8%, the largest drop in a day since October 2008.
Spot gold fell by 5.2% from $2,072.50 per ounce to $1,921.40, from its highest record level on Friday, witnessing its biggest drop since June 2013.
Additionally, gold futures fell sharply by 4.6% to settle at $1,946.30 per ounce.
Analysts said promising economic data helped to speed up sales in the precious metals market, yet predictions still point to a surge for gold.
Among other precious metals, platinum also fell by 4.8% to settle at $938.65 per ounce, while palladium fell to $2,108.60 per ounce – a percentage fall of 5%.