Gold prices were on track for their steepest daily fall in five years on Tuesday, as investors booked profits after expectations of US interest rate cuts and sustained safe-haven demand drove the metal to a record high in the previous session.

Spot gold was down 5.5% to a one-week low of $4,115.26 per ounce as of 01:45 a.m. EDT (1745 GMT), its steepest fall since August 2020.

Prices scaled an all-time peak of $4,381.21 on Monday and have gained about 60% this year, bolstered by geopolitical and economic uncertainty, rate-cut bets and sustained central bank buying.

“Gold dips were being bought as recently as yesterday, but the sharp jump in volatility at the highs over the past week is flashing caution and may encourage at least short-term profit-taking,” said Tai Wong, an independent metals trader.

The dollar index rose 0.4%, making bullion more expensive for holders of other currencies.

“Better risk appetite in the general marketplace early this week is bearish for the safe-haven metals,” Jim Wyckoff, senior analyst at Kitco Metals, said in a note.

Analysts at Citi said in a note they expect an end to the ongoing US government shutdown, as well as US-China trade deal announcements, could contribute to gold prices consolidating over the next two to three weeks.

Spot silver dropped 7.6% to $48.49 per ounce.

“Silver is stumbling badly today and has dragged the entire complex lower,” Wong said.

“It appears we have a short-term top at $54 and while sentiment wobbles under $50, silver is likely to trade sideways with substantial volatility as long as gold remains relatively firm.”

Elsewhere, platinum shed 5.9% to $1,541.85 and palladium lost 5.3% to $1,417.25.

Traders await the release on Friday of the US consumer price index report for September, delayed due to the US government shutdown. It is expected to show a 3.1% year-on-year rise. Markets expect the Federal Reserve will cut interest rates by 25 basis points at its policy meeting next week.

Gold, a non-yielding asset, tends to benefit in a low interest rate environment.