Gold prices retreated on Thursday due to profit-taking after reaching a record high on Wednesday. Spot gold fell 0.4% to $3,542.97 an ounce, while December US gold futures contracts fell 0.9% to $3,601.40.
On Wednesday, spot gold reached an all-time high of $3,578.50. The market is now focused on the Federal Reserve’s (Fed) jobless claims, ADP report, and Friday’s non-farm payrolls data, which will provide clues about the Fed’s interest rate policy. Analysts say gold is in overbought territory and a correction is inevitable.
Markets expect a 25 basis point interest rate cut this month with a 98% probability. This usually creates a supportive environment for gold, which has no yield. On the other hand, geopolitical uncertainties and US President Donald Trump’s statements about canceling trade agreements have increased market anxiety. Goldman Sachs predicts that if investors turn to gold more, prices could rise above $4,000 by mid-2026.
In other precious metals, silver fell 0.7% to $40.92, platinum lost 1.4% to $1,402.18, and palladium declined 1% to $1,136.12.
