Gold and related stocks are falling for a second day

Gold prices fell for a second day on Wednesday, as investors took profits after a weeks-long rally.

Gold futures were last down $61.30, or 1.49%, to $4,053.10 per ounce by 8:25 a.m. ET. Gold mining stocks such as Newmont and Barrick fell more than 4% in premarket trading.

The precious metal sold off sharply Tuesday, losing 5.74% to close at $4,109.10 in its worst performance since 2013. The two-day selloff comes after gold futures hit a intraday record of $4,398 per ounce on Monday.

There is no macroeconomic or geopolitical event driving the pullback in gold prices this week, according to Swiss bank UBS.

“If we look at adjustments to non-commercial positioning, we believe the decline was largely technical,” UBS analysts led by Wayne Gordon told clients Wednesday. “With slowing price momentum and rising option volatility, more speculative investors decided to take profit.”

Gold prices are still up more than 50% this year and nearly 5% this month. The fundamentals that have driven the metal to record highs this year will likely persist, according to UBS. These include inflation, tariffs, threats to Federal Reserve independence and polical instability in the U.S.

“So, importantly, we believe it is premature to turn negative on gold despite the pause in the rally,” Gordon wrote.