Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!
Data: FactSet; Chart: Axios Visuals

Gold fell by 2% on Tuesday with some ETFs seeing prices decline by 5% or more as investors took profits on the precious metal after a rally that has pushed gold to record highs near $2,100 per troy ounce.

Why it matters: It was the third straight session that gold fell, the longest losing streak since June, after seven days of appreciation, and the worst selloff since 2013.

What they're saying: “The scale of the upswing over the past four weeks has been excessive. ... Sentiment towards gold became positive in the extreme, with only a minority of participants sounding a note of caution,” Commerzbank analyst Carsten Fritsch wrote in a note to clients.

  • “The price rise was almost solely attributable to robust investor demand, with all other demand components playing hardly any role."

Be smart: U.S. Treasury yields also spiked on Tuesday, with yields on the benchmark 10-year note up by the most since June, reducing the attractiveness of gold, which does not pay a dividend or interest.

  • The unexpected rise in PPI also hurt gold prices, as it could imply higher U.S. interest rates in the future, analysts said.

Of note: Silver retreated by nearly 5% with silver-backed ETFs down more than 10%.

The big picture: “The long-term outlook for gold and silver remains positive, however," Commerzbank's Fritsch said. "Prices are likely to begin rising again as soon as the current correction has finished.”

  • In fact, analysts expect the declines to attract more buyers looking to buy the dip, as happened in March when gold swooned with the stock market, dropping 28%, only to gain 149% between March 18 and Monday.

Yes, but: "The risk to this view is that we could now be entering a period of wider swings in the gold price, akin to 2011-12, which would be suggestive of a more mature phase in the bull cycle and consistent with the 'accelerated aging' hypothesis," Marc Chandler, chief market strategist at Bannockburn Global Forex, said in a note.

  • The rally also will be dependent on the Fed remaining aggressive in keeping rates down, the dollar continuing to fall and inflation expectations recovering, he added.

Go deeper

Ben Geman, author of Generate
Oct 12, 2020 - Energy & Environment

Oil's chilly season

Data: Federal Reserve Bank of Kansas City; Chart: Axios Visuals

Oil prices can't seem to reach escape velocity, spelling more pain for producers as the COVID-19 pandemic continues to weigh on demand.

Why it matters: The chart above provides a glimpse at why prices remain too low to pull the U.S. sector — which is seeing rising bankruptcies — out of jeopardy.

55 mins ago - World

Putin foe Navalny to be detained for 30 days after returning to Moscow

Russian opposition leader Alexey Navalny. Photo: Oleg Nikishin/Epsilon/Getty Images

Russian opposition leader Alexey Navalny has been ordered to remain in pre-trial detention for 30 days, following his arrest upon returning to Russia on Sunday for the first time since a failed assassination attempt last year.

Why it matters: The detention of Navalny, an anti-corruption activist and the most prominent domestic critic of Russian President Vladimir Putin, has already set off a chorus of condemnations from leaders in Europe and the U.S.

Biden picks Warren allies to lead SEC, CFPB

Photo: Justin Sullivan/Getty Images

President-elect Joe Biden has selected FTC commissioner Rohit Chopra to be the next director of the Consumer Financial Protection Bureau (CFPB) and Obama-era Wall Street regulator Gary Gensler to lead the Securities and Exchange Commission (SEC).

Why it matters: Both picks are progressive allies of Sen. Elizabeth Warren (D-Mass.) and viewed as likely to take aggressive steps to regulate big business.