UOB Global Economics & Markets Research reports a steep selloff in Gold and other precious metals as AI-related risk aversion hit broader markets. They describe algorithmic trading and profit taking as factors behind the move, following a strong prior rally. The note details large percentage declines in Gold, Silver and Copper, underscoring fragile sentiment in the commodities complex.

Precious metals slump on risk aversion

"Gold plunged as concerns about AI spurred a selloff across financial markets with algorithmic traders appearing to amplify the precious metal’s sudden drop."

"Bullion fell as much as 4.1% while silver plunged 11%."

"Copper on the London Metal Exchange declined 2.9%."

"Market talks also indicated some profit taking was done amidst the precious metal’s recent stellar rally."

"Spot gold fell 3.2% to USD4,920.37/oz at NY close, silver dropped 11% to USD75.15/oz, while platinum and palladium fell and copper on the LME slid 2.2%."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)