Opening the week's trading session, global gold prices fell over USD 100 to USD 4,772 per ounce. This marks the third consecutive session of decline, coming after prices peaked at USD 5,594 last week. Overall, the current decline totals over USD 800 per ounce.

The spot silver market saw a similar trend. Each ounce lost nearly USD 2 this morning, now standing at USD 83 per ounce. Over the past three sessions, silver prices dropped by about USD 40.

Global gold prices dropped below USD 4,800 on the morning of 2/2. Chart: Kitco

Analysts point to several reasons for the sell-off in precious metals: These include the stabilization of the US dollar following news of US President Donald Trump announcing his nominee for Federal Reserve Chair, profit-taking by investors after prices peaked, and easing geopolitical risks.

Despite this, individual investors remain optimistic about a potential gold price reversal this week. In an online poll by Kitco News involving 340 investors, about 73% (nearly 250 people) expect the precious metals market to rise. 16% of investors predict gold will continue its decline, while the remaining 11% anticipate prices will stabilize.

Meanwhile, only 39% of the 18 Wall Street analysts surveyed believe gold can reclaim the USD 5,000 mark. Another 39% expect the correction phase to continue, and 22% hold a neutral view.

This week, investors will receive several important economic reports that could influence precious metal prices. These include the manufacturing index for January, the December employment report, and US consumer confidence survey results. The central banks of England, Europe, and Australia will also announce interest rate decisions during their policy meetings this week.

Ha Thu (Source: Kitco)