WASHINGTON (dpa-AFX) - Gold prices declined sharply on Wednesday as traders resorted to profit-taking from the recent record highs along with emerging signals of a ceasefire in the Russia-Ukraine war.
Trading remained slim as the holiday season continues play out and investors postponed big moves for next week.
Front Month Comex Gold for January delivery slumped by $44.50 (or 1.02%) to $4,325.60 per troy ounce. Despite the steep drop on the day, gold catapulted $1,696.40 this year for a massive 64.52% increase.
Front Month Comex Silver for January delivery plunged by $7.24 (or 9.36%) to $70.134 per troy ounce. However, for this year, silver zoomed $41.1940 for an enormous 142.34% increase.
U.S. President Donald Trump's efforts to bring the drawn-out Russia-Ukraine war with his new peace proposal (a 20-point plan) has apparently crossed the half-way mark.
Russia announced that the negotiations have reached the final stage, although Trump said 'one or two thorny, very tough issues' remain.
The ownership for the industrial Donbas region in Ukraine has been a contentious issue.
Ukrainian President Volodymyr Zelenskyy expressed distrust with Russian President Vladimir Putin and suggested that Trump should visit Ukraine to assess and discuss the situation. Of note, Zelensky is set to hold talks with his European allies on January 6.
On Monday, Russia alleged that Ukraine launched a drone attack on one of the official residences of Putin, but Zelenskyy denied the claims, called them 'fabricated.'
Experts feel that the war will soon reach its end as U.S. mediation is undeterred despite these claims and counterclaims.
The U.S.-Venezuela conflict has escalated to the next level after confirmed reports surfaced of the CIA conducting a drone strike on December 24 which targeted a coastal port inside Venezuela, the first U.S. offensive in Venezuelan territory.
After Trump accused Venezuela's President, Nicolas Maduro of promoting narcotics smuggling bound to the U.S., since August, the U.S. military has been engaged in a massive buildup around Venezuela. Weeks before, Trump ordered a total 'naval blockade' on sanctioned oil tankers leaving or entering Venezuela.
In the Middle East, with phase one of the Gaza Peace Plan completed, Trump wants to implement phase two 'very quickly.'
Trump warned Hamas that 'there will be hell to pay' if the militant group does not disarm as they committed.
Trump also cautioned Iran of dire consequences if the nation resumes prohibited nuclear programs. Days before, Iran's President Masoud Pezeshkian announced an unprecedented 'all-out war' with the U.S. Europe, and Israel.
U.S. sanctions are draining Iran's finances. Rial has lost one-third of its value over the year. The country is witnessing growing unrest.
On Friday, Saudi Arabia bombed the port city of Mukalla targeting a weapons consignment to be delivered for the STC separatists, a militant group that has the backing of the United Arab Emirates. Following the attack, UAE has conceded to withdraw from Yemen.
Minutes from the U.S. Federal Reserve's December meeting released yesterday, as widely expected, revealed divisions among policymakers on future rate cuts.
While a majority of them admitted additional rate cuts would be appropriate if inflation declines in the coming weeks, a few others wanted rates to be kept unchanged for 'some time.'
Data released by the U.S. Department of Labor revealed that initial jobless claims fell by 16,000 to 199,000 for the week ending December 27, below market expectations of 220,000.
Continuing jobless claims declined to 1,866,000 for the week ending December 20, down from 1,913,000 in the previous week.
The U.S. dollar index was last seen trading at 98.39, up by 0.16 (or 0.16%) today.
Trump's tariff war, geopolitical tensions, Fed rate cuts, strong central bank purchases, and robust retail demand have been among the factors that accelerated gold's momentum in 2025.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
