Gold eases after record high, heads for eighth straight weekly gain
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The Gaza ceasefire agreement slightly eased geopolitical risk premiums, slightly lowering the price.
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A collection of gold coins is displayed at a shop in the St. Vincent Jewelry Center in the Jewelry District of Los Angeles, Wednesday, April 30, 2025. (AP Photo/Jae C. Hong)
Gold prices slipped slightly on Friday as investors booked profits following the metal’s record-breaking rally above the $4,000-an-ounce threshold earlier this week. Despite the pullback, gold remains poised for an eighth consecutive weekly gain, supported by expectations of US interest rate cuts and continued global uncertainty.
As of 09:01 GMT, spot gold dipped 0.1% to $3,970.11 per ounce, though it has advanced 2.3% this week. US gold futures for December delivery rose 0.3% to $3,983.70.
"The $4,000 level acted as a psychological trigger for profit-taking among short-term traders," Alex Ebkarian, COO at Allegiance Gold, told Reuters.
"For long-term investors, it confirms that faith in fiat currencies continues to weaken. Gold remains in a secular bull market for the next several years."
Geopolitical, monetary factors fuel demand
Gold, widely regarded as a safe-haven asset, surged to a record $4,059.05 on Wednesday, driven by geopolitical tensions, steady central bank buying, renewed ETF inflows, and mounting trade-related uncertainty.
Meanwhile, "Israel's" ratification of a ceasefire deal with the Palestinian Resistance on Friday slightly eased geopolitical risk premiums, tempering immediate demand for bullion.
Minutes from the US Federal Reserve's September meeting revealed policymakers were increasingly open to rate cuts to safeguard the labor market, despite lingering inflation concerns. Markets expect two 25-basis-point reductions in October and December, according to the FedWatch Tool.
Other precious metals
Silver prices rose 2.8% to $50.51 per ounce, extending this year's rally after touching an all-time high of $51.22 in the previous session. The metal has jumped 75% year-to-date, supported by industrial demand and tightening supply.
"With elevated lease rates, a strong backwardation curve, and scarce liquidity in the London OTC market, silver volatility will likely remain high," Hugo Pascal, precious metals trader at InProved, told Reuters.
Backwardation occurs when a commodity’s spot price exceeds its futures price. "If the market reverts to contango and pressures ease, silver could see a short-term pullback, potentially a prime buying opportunity," Ebkarian added.
Among other precious metals, platinum slipped 0.8% to $1,606.20, while palladium edged 0.3% higher to $1,415.25. Both metals were still set to close the week with gains.
