Gold prices edged down in early Asian trading on Thursday, pausing after a record-breaking rally, as the announcement of a ceasefire between Hamas and Israel reduced safe-haven flows. The precious metal, however, managed to stay comfortably above the symbolic $4,000 per ounce level.
Investor sentiment remained supported by lingering worries over Japan’s fiscal stability, the ongoing U.S. government shutdown, and political turmoil in France. The Federal Reserve’s September meeting minutes also struck a dovish tone, fueling bets on additional rate cuts — a key factor that has underpinned the metal in recent weeks.
By 01:30 ET (05:30 GMT), spot gold slipped 0.1% to $4,039.34 per ounce, while December futures dipped 0.3% to $4,056.67. Earlier in the session, spot prices touched a record high of $4,059.34 per ounce after moving past the $4,000 level for the first time.
Ceasefire triggers profit-taking
The pullback came after Israel and Hamas agreed to the first stage of a U.S.-mediated ceasefire deal. The breakthrough was reached during indirect negotiations in Egypt, just days after the second anniversary of the Hamas attack that ignited the conflict.
The 20-point plan proposed by U.S. President Donald Trump outlines a full Israeli withdrawal from Gaza and a framework for future Palestinian self-governance. If fully carried out, the agreement could represent the closest step yet toward a lasting peace.
The ceasefire news pressured oil prices and boosted appetite for riskier assets, leading some investors to lock in profits on gold after its sharp rally.
Fed rate cut bets keep metals supported
Base and precious metals showed mixed performance but held near recent highs, underpinned by expectations that the Federal Reserve will lower rates next month.
Spot platinum was steady at $1,660.98 per ounce after a surge to more than 10-year highs earlier this week. Silver rose 0.5% to $49.11 per ounce, supported by an upgraded price forecast from HSBC, which said it expects a new record high in the near future.
CME FedWatch data indicated that markets are almost fully pricing in a 25-basis-point rate cut in October. Lower borrowing costs typically strengthen the appeal of non-yielding assets like gold and silver.
All eyes are now on an upcoming speech from Federal Reserve Chair Jerome Powell, which may offer more insight into the central bank’s policy outlook.
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