Gold prices edged lower in Asian trading on Thursday, retreating slightly from record highs as news of a ceasefire between Hamas and Israel dampened safe-haven demand. Despite the pullback, the precious metal remained firmly above the key $4,000 per ounce level.
Sentiment toward gold stayed supported by ongoing concerns over Japan’s fiscal position, the prolonged U.S. government shutdown, and political instability in France. A dovish tone in the minutes of the Federal Reserve’s September meeting also kept investors optimistic about more interest rate cuts, providing additional support to bullion.
By 01:30 ET (05:30 GMT), spot gold slipped 0.1% to $4,039.34 per ounce, while December futures were down 0.3% at $4,056.67. Earlier in the session, spot prices hit a new all-time high of $4,059.34 after breaching $4,000 for the first time.
Gaza ceasefire sparks profit-taking
The modest decline followed reports that Israel and Hamas had agreed to the first phase of a U.S.-brokered ceasefire deal. The agreement, reached through indirect talks in Egypt, comes just days after the second anniversary of Hamas’ cross-border attack that triggered the current conflict.
Under the 20-point framework proposed by U.S. President Donald Trump, the plan includes a full Israeli withdrawal from Gaza and a roadmap toward eventual Palestinian governance. If fully implemented, it would mark the most significant step toward peace in years.
News of the ceasefire pressured oil prices while boosting risk-sensitive assets, reducing some of gold’s safe-haven appeal.
Metals hold firm on Fed rate cut expectations
Broader metals markets were mixed but continued to trade near multi-year highs, supported by expectations that the Federal Reserve will cut interest rates in October.
Spot platinum was little changed at $1,660.98 an ounce after hitting its highest levels in over a decade earlier in the week. Silver climbed 0.5% to $49.11, nearing the $50 mark, with additional momentum coming from HSBC’s upgraded price forecast and its projection of a record high in the near term.
According to CME FedWatch data, traders are pricing in nearly a 100% probability of a 25-basis-point cut at the Fed’s next meeting. Lower interest rates generally enhance the appeal of non-yielding assets such as precious metals.
Attention later in the day will turn to a speech by Federal Reserve Chair Jerome Powell, which could offer more signals on the central bank’s next policy steps.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply