Gold gives up record highs on profit-taking

Gold prices retreated in European trading on Thursday, giving up their record highs, amid active corrective moves and profit-taking, as safe-haven demand for the metal slowed after US President Donald Trump adopted a cautious stance toward the protests in Iran.

Prices were also pressured by a stronger US dollar ahead of the release of key US labor market data, which are expected to provide further clues about the Federal Reserve’s interest rate path over the course of this year.

Price Overview

• Gold prices today: Gold fell by around 1.0% to $4,581.33, from an opening level of $4,627.35, after touching an intraday high of $4,632.73.

• At Wednesday’s settlement, the precious metal gained 0.9% and recorded an all-time high at $4,643.02 per ounce.

US Dollar

The US dollar index rose by 0.15% on Thursday, resuming gains that had briefly paused in the previous session, and moved closer to a four-week high, reflecting broad strength in the US currency against a basket of major and minor currencies.

US President Donald Trump said on Wednesday that he does not intend to dismiss Federal Reserve Chair Jerome Powell, despite the criminal investigation being conducted by the Department of Justice, adding, however, that it was “too early” to determine what he would ultimately do.

US Interest Rates

• Trump welcomed the inflation data released this week and renewed his call for Federal Reserve Chair Jerome Powell to cut interest rates “substantially.”

• According to the CME FedWatch tool, the probability of leaving US interest rates unchanged at the January 2026 meeting currently stands at 95%, while the probability of a 25-basis-point rate cut is priced at 5%.

• Investors are currently pricing in two US rate cuts over the course of next year, while Federal Reserve projections point to a single 25-basis-point cut.

• To reassess these expectations, investors are awaiting the release later today of additional key US data, including weekly jobless claims.

Gold Outlook

Market strategist Ilya Spivak said: We are seeing a modest pullback in gold prices today after Trump said the US may not intervene in Iran, which curbed safe-haven demand, but the broader story supporting higher prices remains intact.

SPDR Fund

Gold holdings at the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, were unchanged on Wednesday, keeping total holdings at 1,074.23 metric tons, the highest level since June 17, 2022.