Gold retreated from record highs: investors take profits ahead of US data release

Gold prices fell after reaching an all-time high, as traders began to take profits and await key US labor market data. Despite the pullback, experts emphasize that the gold market remains in an upward trend. This was reported by Reuters, writes UNN.

DetailsOn Thursday morning, the spot price of gold fell by 0.6% to $3538.56 per ounce, while December futures on COMEX decreased by 1.1% to $3596.20. The day before, quotes reached a record level of $3578.50 per ounce, which was the highest mark in history.

Experts explain the fall by a short-term correction after a rapid rise.

We are seeing a small profit-taking, but gold is still in a bull market at the moment. Expectations of interest rate cuts and fears about the independence of the Federal Reserve will increase demand for safe-haven assets

Investors are closely monitoring US macroeconomic data, particularly the employment report, which will be released on Friday. These indicators could influence expectations regarding future steps by the Federal Reserve, including a possible reduction in interest rates.

Other precious metals also showed a decline: silver fell by 0.8% to $40.85 per ounce after reaching a high since 2011, platinum lost 1% and traded at $1407.10, palladium decreased by 0.8% to $1138.11.

RecallThe price of gold in Asian trading rose to a two-week high. This happened against the backdrop of a falling dollar and a conflict between President Donald Trump and the US Federal Reserve.

Despite the former increase in the value of monetary gold as a way of storing money, its popularity as a jewelry metal has significantly decreased. As noted in a comment for UNN by financial expert Olena Sosedka, this most affected key markets – India and China.

“Gold prices on the world market have become so high that it has reduced the popularity of buying gold jewelry. The key markets, such as India and China, have been most affected, but the global slowdown in demand is felt worldwide. Due to rising prices, former admirers of gold jewelry are increasingly turning to other precious metals. On the other hand, gold is more often considered as a way to preserve capital in conditions of economic instability and high inflation. And not as an everyday item,” said Olena Sosedka.

In addition, analysts at Goldman Sachs, one of the world’s largest and most influential investment banks, predict that if the dollar continues to fall, the price of gold will reach $3,700 per troy ounce by the end of 2025.