Gold prices drop 1.21% as profit-taking ends two-day rally

Gold prices declined during trading on Wednesday, 19 August, snapping a two-session rally as investors locked in profits from recent gains. The yellow metal retreated from its previous highs as technical selling pressure impacted precious metals across the board. Contract values and percentage drops In New York trading, gold for September delivery fell by $53.60, representing a 1.21% decrease. This movement brought the spot price to $4,370.80 per ounce. The price correction follows a period of volatile trading where the metal had hit record resistance levels earlier in the week. Silver prices tracked the downward trend, experiencing a sharper percentage loss than gold. Silver for September delivery dropped by $2.186, or 3.30%, to settle at $64.045 per ounce. The decline reflects broader market sentiment as industrial demand outlooks shifted slightly in the mid-week session. Market triggers and outlook The price drop was triggered by a technical correction following two consecutive sessions of gains, according to market data released on Wednesday, 19 August. Investors are currently monitoring US economic indicators for signals on future interest rate trajectories, which typically dictate the opportunity cost of holding non-yielding assets like bullion. For UAE-based investors and retail buyers, the drop in international prices often translates to lower local retail rates for 22K and 24K gold jewelry, provided the dirham-to-dollar peg remains stable. Market participants are…