Global Gold Prices Retreat from Record Highs amid Profit-Taking
Global gold prices edged lower on Thursday after hitting a historic peak earlier in the session, as investors moved to lock in profits following a strong rally that has placed precious metals firmly in the spotlight in recent weeks, according to Reuters.
Spot gold prices declined to USD 4,479.38 per ounce after reaching an all-time high of USD 4,525.18 earlier in the day. Meanwhile, U.S. gold futures for February delivery ended the session slightly lower at USD 4,502.8 per ounce.
Commenting on market movements, Jim Wyckoff, Senior Analyst at Kitco Metals, said the market is witnessing profit-taking and a period of technical consolidation following the recent record-breaking surge. He noted that the prevailing low interest rate environment, coupled with ongoing global uncertainty, continues to provide strong underlying support for gold prices.
Wyckoff added that the next upside target for gold could reach USD 4,600 per ounce, while silver may climb to USD 75 per ounce by year-end, as technical indicators remain broadly bullish.
Market sentiment has also been influenced by comments from U.S. President Donald Trump, who said he would like the next Chair of the Federal Reserve to cut interest rates if markets continue to perform well. This comes after the U.S. central bank cut interest rates three times this year, with traders currently pricing in two additional rate cuts next year.
Other Precious Metals
Silver prices briefly touched a record high of USD 72.70 per ounce before easing to USD 71.94. Since the start of the year, silver has surged by around 149%, significantly outperforming gold, which has gained more than 70% over the same period. The strong performance reflects robust demand, particularly from industrial applications.
Platinum prices climbed to a peak of USD 2,377.50 per ounce before retreating to USD 2,220.44, while palladium fell by more than 9% to USD 1,683.58 after hitting its highest level in three years.
Despite the latest pullback, analysts expect precious metals to remain supported by expectations of monetary easing and persistent global economic uncertainty.