Gold and other precious metals pulled back on Friday as easing geopolitical tensions following the Israel-Hamas ceasefire encouraged investors to lock in profits.
Bullion recorded sharp overnight losses and remained under pressure in Asian trading, with a stronger U.S. dollar adding further weight. Gains in the greenback were supported by lingering uncertainty over the future of U.S. interest rates, as well as declines in the Japanese yen and the euro.
Spot gold slipped 0.2% to $3,970.88 per ounce, while December gold futures edged up 0.3% to $3,985.20/oz by 01:13 ET (05:13 GMT). Earlier this week, spot prices broke above the $4,000/oz mark for the first time, reaching a record high of $4,059.32/oz.
Gold’s rally stalled soon after the signing of a U.S.-brokered ceasefire between Israel and Hamas. The agreement marks the first phase of a 20-point peace plan proposed by U.S. President Donald Trump and is viewed as one of the most comprehensive diplomatic efforts in the Middle East in recent years.
But easing geopolitical tensions are expected to sap some safe-haven demand for gold. Other precious metals also declined on the back of the ceasefire, after tracking gold’s surge earlier in the week. Spot platinum dropped from near a 13-year high to trade at $1,603.92/oz on Friday, while spot silver stabilized at $49.6655/oz after briefly surpassing $51/oz and setting a record high on Thursday.
Despite Friday’s pullback, gold remains up 2.3% for the week, marking its eighth consecutive week of gains. Silver has climbed 3.5%, while platinum is flat.
ANZ analysts noted that recent declines were primarily driven by profit-taking after a “meteoric rise” in recent weeks. However, they expect any softness in prices to be “short-lived and shallower,” citing multiple factors that could continue to support gold.
“We see structural drivers for gold still in place to support higher prices. The Federal Reserve is expected to remain on its easing path amid increasing downside risks to employment,” ANZ analysts wrote in a note.
They also emphasized that ongoing political uncertainty in the U.S. could help sustain gold demand, particularly as a prolonged government shutdown keeps investors cautious.
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