Gold falls again as rally comes to halt

GOLD and silver tumbled for a second day yesterday, bringing a rally in the precious metals to a jagdering halt, while equities also sank after US President Donald Trump remarked that a meeting with Chinese counterpart Xi Jinping might not take place.

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Bullion has seen an eye watering run-up since the turn of the year, helping it climb more than 60% and hitting multiple records, with observers suggesting it could soon hit $5 000 (about R87 000) an ounce.

The rally has been built on a range of issues including a weaker dollar, expectations of interest rate cuts, falling bond yields and central bank buying.

Lingering worries about the global outlook have also boosted its haven status, while a fear of missing out on the surge has equally played a part.

But the buying reversed this week, tanking as much as six percent at one point, and continued its retreat in Asia, hit by profit-taking, hopes for a further easing of China-US tensions and a stronger dollar.