Gold and silver prices fell as traders assessed the previous record surge

Gold and silver prices fell as traders assessed the previous record rally, with technical indicators showing overbought signs, while tensions between China and the U.S. eased somewhat. Gold prices dropped by as much as 2.6%, having previously reached a new high of $4,381.52 per ounce on Monday. The sharp rise in gold has pushed indicators such as relative strength deep into the overbought territory. A stronger dollar has also made precious metals more expensive for most buyers. Silver prices fell by as much as 6.2%. "In recent trading days, traders have become increasingly cautious due to rising concerns about a correction and consolidation in the market," said Ole Hansen, a commodity strategist at Saxo Bank. "Correction periods often reveal the true strength of the market, and this time is no exception; potential buying interest should help limit the extent of the pullback."