Gold futures, coming off five straight days of setting record-high prices, slipped Tuesday morning and some analysts attribute the fall to the precious metal's rally being overdone, Bloomberg reports.
Last Tuesday, gold futures set record highs of $1,456.40 per troy ounce, which were broken Wednesday when the precious metal's value was $1,463.70 per troy ounce. On Thursday, the precious metal was worth more than $1,464.50 per troy ounce. On Friday, gold futures notched $1,476.20 per troy ounce, which stood over the weekend then was broken on Monday.
"The rally of gold prices has a shaky footing as there have still hardly been any inflows into exchange-traded funds and correction potential is building up," according to a note from Eugen Weinberg, head of commodity research at Commerzbank. "A broader correction of commodity prices seems to be needed."
Shortly after 8 a.m. on Tuesday, gold futures were down 0.37 percent, a $3.55 reduction to $1,462.60 per troy ounce. The precious metal's record price is $1,478.18, which was set on Monday.
"Sentiment in gold and silver markets will likely be bearish," Ong Yi Ling, Singapore-based analyst with Phillip Futures, told the news service. "Investors may be eager to lock in profits after the recent rally, fearing the exit of large commodity players from the market."
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