Gold eases after record-breaking rally

Gold prices eased slightly on Thursday as investors locked in profits after the precious metal’s historic surge above the $4,000-per-ounce mark, driven by geopolitical tensions and expectations of further U.S. interest rate cuts.

Spot gold slipped 0.4% to $4,020.99 per ounce at 0302 GMT, retreating from Wednesday’s record peak of $4,059.05. U.S. gold futures for December delivery were down 0.7% at $4,040.70.

The pullback came after Israel and Hamas agreed to the first phase of U.S. President Donald Trump’s Gaza peace plan—a ceasefire and hostage exchange deal that could pave the way toward ending the two-year-long conflict.

“You can’t ignore the significance of the initial Israel-Hamas deal, given that geopolitical risk has been one of gold’s main drivers,” said Kyle Rodda, analyst at Capital.com. “But this looks more like a convenient opportunity for traders to take profits after another record high.”

Minutes from the Federal Reserve’s September 16–17 meeting, released Wednesday, showed officials were inclined toward rate cuts to support the labor market, though concerns about persistent inflation lingered.

Markets now expect two 25-basis-point rate cuts this year—one in October and another in December—with probabilities of 94% and 79%, respectively, according to the CME FedWatch Tool.

Gold tends to perform well in periods of low interest rates and heightened uncertainty.

The recent rally—up 54% so far this year—has been fueled by central bank purchases, growing demand for gold-backed exchange-traded funds (ETFs), a weaker U.S. dollar, and persistent geopolitical tensions.

Global equity markets have wobbled this week amid political unrest in France and Japan, alongside the ongoing U.S. government shutdown, prompting a flight to safe-haven assets like gold.

Among other precious metals, spot silver slipped 0.1% to $48.83 per ounce after touching an all-time high of $49.57 on Wednesday. Platinum declined 0.8% to $1,649.81, while palladium edged 0.1% lower to $1,447.81.