Riding on safe-haven appetite, international gold prices, which had been surging, on the 29th (local time) rose above $5,500 per ounce for the first time ever, then reversed lower as profit-taking poured in.
According to Reuters, as of 1:30 p.m. Eastern time, spot gold was trading at $5,330.20 per ounce, down 1.3% from the previous session.
Spot gold first broke through $5,500 per ounce intraday and jumped as high as $5,594.82, but then plunged, at one point slipping to the low $5,100s.
Gold futures for February delivery settled at $5,318.40 per ounce on the New York Mercantile Exchange, down 0.3% from the previous trading day.
David Meger, a director at metals trading firm High Ridge Futures, told Reuters, "After precious metals hit record highs day after day, large-scale selling is emerging."
International gold prices broke through $5,000 per ounce for the first time ever on the 26th, and buying continued, extending a record-setting rally over the past week. Despite the pullback on the day, spot gold rose about 24% in a month and is up 7% just this week.
UBS said in a report that gold could rise to $6,200 per ounce in the first to third quarters this year, then retrace to around $5,900 per ounce by year-end.
Gold is regarded as a leading safe asset that can replace the dollar and has remained strong this year. Concerns that the independence of the Federal Reserve could be undermined and U.S. President Donald Trump's threat to annex Greenland, among other factors, led to views that confidence in dollar assets could weaken, fueling the rise in gold prices.
Rising geopolitical tensions, including the United States deploying a carrier strike group to the Middle East while demanding Iran abandon its nuclear development program, also contributed to higher gold prices.
Meanwhile, as gold turned lower, silver also fell. Spot silver was trading at $114.14 per ounce, down 2.1% from the previous session at the same time, after rising intraday to $121.64 to hit a high.