Spot gold declined 1.4% at $4,470.56 per ounce, as of 1017 GMT, after hitting a record high of $4,549.71 on Friday. U.S. gold futures for February delivery lost 1.3% to $4,493.20 per ounce. Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here. Spot silver shed 4.8% at $75.32 per ounce, retreating from an all-time high of $83.62 hit earlier in the session.
Spot platinum fell 6% to $2,305.15 per ounce, after rising to an all-time high of $2,478.50 earlier in the day, while palladium plunged 13.2% to $1,669.11 per ounce. "This morning’s 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% year-to-date, driven higher 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 in a low-interest-rate environment. "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.
