FX.co ★ Gold Poised to Break Nine-Week Winning Run

Gold prices experienced a decline to approximately $4,110 per ounce on Friday, poised to break a nine-week pattern of gains. This drop was driven by substantial selling pressure following a series of record highs in previous sessions. Early in the week, gold prices plummeted over 5%, marking the most significant intraday loss in five years. This downturn coincided with notable withdrawals from gold-backed exchange-traded funds (ETFs), which recorded their largest single-day reduction in holdings by tonnage in five months. Despite this, gold has risen about 55% for the year, underpinned by continuous trade tensions. Attention now turns to the forthcoming trade talks between President Trump and President Xi next week. Additionally, geopolitical risks have been exacerbated by new U.S. sanctions on Russia aimed at compelling Moscow towards a Ukraine ceasefire. In parallel, market expectations for two additional Federal Reserve rate cuts by year-end have provided ongoing support for bullion. Investors are currently anticipating today's critical Consumer Price Index (CPI) report, which could have implications for future monetary policy decisions.