Gold prices declined for a second session, falling 1.49% to $4,053.10 per ounce, following Tuesday’s steep 5.74% selloff — the worst in over a decade. UBS attributed the move to technical selling and profit-taking after gold futures hit a record $4,398 on Monday. While no broad-based or geopolitical driver was cited, the pullback came as momentum cooled and volatility increased.
Despite the drop, gold remains up over 50% for the year. UBS believes the underlying drivers — inflation, political uncertainty, and concerns over Federal Reserve independence — remain intact.
Gold mining stocks such as Newmont and Barrick fell more than 4%.
What’s Driving Market Caution?
So far, 87% of the 78 S&P 500 companies reporting have exceeded earnings estimates, according to LSEG. Still, concerns persist that stretched valuations require more than earnings beats.
Tesla’s post-close report will be the first from the “Magnificent Seven,” whose results may determine the near-term path of the S&P 500, given their outsized market weight.
With Friday’s core CPI expected at 3.1%, that data may serve as the Fed’s final inflation read before next week’s policy meeting. If heavyweight tech names underdeliver, markets could lean bearish in the short term.
More Information in our Economic Calendar.