Silver retreats from $80 peak while gold softens on profit-taking
NEW YORK (December 29) Silver retreated after touching a record peak above $80 an ounce on Monday while gold slipped from levels close to historic highs as investors booked profits and a market perception of reduced geopolitical risks curbed safe-haven buying.
Spot gold was down 1.7% at $4,455.35 an ounce by 1321 GMT after hitting a record $4,549.71 on Friday. U.S. gold futures for February delivery lost 1.7% to $4,474.80.
Spot silver shed 5.1% to $75.15 an ounce, retreating from a record high of $83.62 hit earlier in the session.
Spot platinum slid by 6.9% to $2,281.15 an ounce after touching a record peak of $2,478.50 while palladium plunged 11.9% to $1,694.75 an ounce.
"This morning’s (gold) price decline, which follows record highs, is attributable mainly to traders taking profits ahead of the year-end," said ActivTrades analyst Ricardo Evangelista.
"Tentative optimism from the U.S. administration regarding progress in the Ukraine peace talks also represents a mild headwind."
U.S. President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskiy were "getting a lot closer, maybe very close" to an agreement to end the war in Ukraine.
Bullion has risen about 72% this year, rallying on factors such as softer U.S. monetary policy, dollar weakness, geopolitical friction and robust central bank purchases.
Outperforming gold, silver has gained 181% so far this year, driven by its designation as a U.S. critical mineral, supply shortages and rising industrial and investor appetite.
Markets are looking out for the release of the Fed's December meeting minutes, due on Tuesday, for clues on the interest rate outlook.
Traders are pricing in two rate cuts next year. Non-yielding assets tend to do well when interest rates are low.
"Gold prices are trading at an elevated premium, and downside risks could emerge if a hawkish pivot by the Federal Reserve were to surprise and/or large ETF outflows were to affect the market," UBS analysts said in a note.
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