Gold (XAUUSD) may end its historic year on a sour note, as the precious metal is down by nearly 5% today. Despite the drop, gold is still up by over 70% year-to-date and is on track for its best year since 1979.
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Profit-taking may be the culprit for today’s fall as investors secure gains for the tax year. “The most important thing for people like me who have been bullish on gold forever is two words: Take profits,” said Mike McGlone, senior commodity strategist at Bloomberg Intelligence. McGlone added that gold peaked in 1980 before crashing lower, warning investors to “be careful.”
Why are Gold and Silver Dropping?
Silver (XAGUSD), which has managed to outperform gold this year with a 170% return, is also trading lower with a 9.5% loss at the time of writing. Silver surged to an all-time high of $82 in early morning trading before sharply reversing course following reports that China is expected to restrict exports of the precious metal beginning in 2026.
Both precious metals have experienced high demand this year, driven by their status as safe-haven assets amid increased geopolitical uncertainty and falling interest rates.
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