Gold retreats after record high as investors take profits

October 9, 2025 (MLN): Gold prices eased on Thursday as investors booked profits following a record-breaking rally that pushed bullion above the key $4,000 per ounce level for the first time, driven by mounting economic and geopolitical uncertainties and growing expectations of further U.S. interest rate cuts.

Spot gold was up 1.55% at $4,038.58 an ounce as of [10:13 am] PST, according to data reported by Mettis Global.

U.S. gold futures for December delivery slipped 0.7% to $4,042.60.

According to minutes from the Federal Reserve’s September 16–17 meeting, officials agreed that risks to the U.S. labor market had increased enough to justify a rate cut.

 However, policymakers remained cautious due to lingering inflation pressures and uncertainty over how much higher borrowing costs are affecting economic activity, CNBC reported.

Markets are currently pricing in two more 25 basis point rate cuts one in October with a 95% probability and another in December with an 83% chance, according to the CME FedWatch tool.

Gold, a non-yielding asset, tends to benefit from a low-interest-rate environment and periods of heightened uncertainty.

Investors have been navigating a volatile week marked by political turmoil in Japan and France and an ongoing U.S. government shutdown, prompting renewed safe-haven demand for bullion.

The yellow metal has surged 54% year to date, buoyed by strong central bank purchases, robust inflows into gold-backed Exchange-Traded Funds (ETFs), a weaker U.S. dollar, and rising retail investor interest amid escalating trade and geopolitical tensions.

Holdings of the SPDR Gold Trust, the world’s largest gold-backed ETF, edged up 0.14% to 1,014.58 tons on Wednesday, from 1,013.15 tons the previous day.

Among other precious metals, spot silver inched up 0.1% to $48.91 per ounce after touching a record $49.57 on Wednesday. Platinum fell 0.7% to $1,650.60, while palladium dropped 1% to $1,435.25.

Copyright Mettis Link News