Gold rose on Tuesday to recover from a two-week low hit in the previous session on year-end profit-taking.<\/p>\n
Thad | E+ | Getty Images<\/p>\n
Gold\u00a0rose\u00a0on Tuesday to recover from a two-week low hit in the previous session on\u00a0year-end profit-taking\u00a0that sparked\u00a0a broad pullback\u00a0in\u00a0precious\u00a0metals from earlier peaks.<\/p>\n
Spot\u00a0gold<\/a>\u00a0was up 0.7% at $4,363.79 per ounce, as of 0322 GMT, after hitting a record high of $4,549.71 on Friday. It fell to its lowest since December 17 on Monday, also its sharpest daily loss since October 21.<\/p>\n U.S.\u00a0gold\u00a0futures<\/a>\u00a0for February delivery were up 0.8%\u00a0at $4,377.80\/oz.<\/p>\n “The earlier run was overextended in the last one week or so, which makes (the\u00a0precious\u00a0metals) much more vulnerable for the leveraged long positions being squeezed on the downside,” said Kelvin Wong, senior market analyst at OANDA.<\/p>\n The relative strength indices (RSI) for both\u00a0gold\u00a0and silver fell from overbought territory on Monday.<\/p>\n Bullion has staged a stellar run in 2025, climbing 66% so far.<\/p>\n Interest rate cuts and bets of further easing by the U.S. Federal Reserve<\/a>, geopolitical conflicts, robust demand from central banks, and rising holdings in exchange-traded funds have fueled\u00a0gold’s rally this year.<\/p>\n Traders expect at least two interest rate cuts next year. Non-yielding assets tend to do well in a low-interest-rate environment.\u00a0<\/p>\n Spot silver<\/a>\u00a0was up 3% at $74.41 per ounce, after hitting an all-time high of $83.62 in the previous session. Silver registered its biggest daily loss since August 11, 2020, on Monday.<\/p>\n Silver has gained 154% year-to-date, far outpacing\u00a0gold, propelled by its designation on the critical U.S. minerals list, supply constraints, and low inventories amid rising industrial and investment demand.<\/p>\n “I’m expecting the longer-term rally to continue for both\u00a0gold\u00a0and silver with price targets in the next six months at $5,010\/oz for\u00a0gold, and $90.90 for silver,” Wong said.<\/p>\n