Gold, silver down from overbought territory
Silver hit all-time high of $83.62/oz on Monday
Platinum suffered sharpest ever daily loss on Monday
Dec 30 (Reuters) - Gold rose on Tuesday to recover from a two-week low hit in the previous session on year-end profit-taking that sparked a broad pullback in precious metals from earlier peaks.
Spot gold XAU= was up 0.7% at $4,360.74 per ounce, as of 00:10 ET, 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.
Spot silver XAG= was up 3% at $74.06 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.
U.S. gold futures GCcv1 for February delivery were up 0.7% at $4,374.80/oz.
"The earlier run was overextended in the last one week or so, which makes (the precious metals) much more vulnerable for the leveraged long positions being squeezed on the downside," said Kelvin Wong, senior market analyst at OANDA.
The relative strength indices $(RSI)$ for both gold and silver fell from overbought territory on Monday.
Bullion has staged a stellar run in 2025, climbing 66% so far.
Interest rate cuts and bets of further easing by the U.S. Federal Reserve, geopolitical conflicts, robust demand from central banks, and rising holdings in exchange-traded funds have fueled gold's rally this year.
Silver has gained 154% year-to-date, far outpacing gold, propelled by its designation on the critical U.S. minerals list, supply constraints, and low inventories amid rising industrial and investment demand.
"I'm expecting the longer-term rally to continue for both gold and silver with price targets in the next six months at $5,010/oz for gold, and $90.90 for silver," Wong said.
Spot Platinum XPT= rose 1.1% to $2,132.86 per ounce. On Monday, it dropped the most in a day ever recorded after having touched an all-time high of $2,478.50.
Palladium XPD= added 1.1% to $1,634.29 per ounce, after its value dropped by 16% on Monday.