WASHINGTON: Gold prices slipped in the international market on Thursday, October 9, as investors cashed in profits after the precious metal’s record-breaking run that saw it cross the $4,000-per-ounce mark for the first time ever.
The brief pullback came amid hopes of further US rate cuts and easing geopolitical tensions following progress toward a Gaza ceasefire.
Gold eases after record-breaking surge
Spot gold was down 0.4 percent at $4,020.99 per ounce as of 0302 GMT, after touching a historic peak of $4,059.05 on Wednesday. Analysts said the slight dip was more of a technical correction than a sign of weakness, as investors chose to book profits following the rally.
“The first-phase deal between Israel and Hamas is significant, considering geopolitical tensions were one of the drivers behind gold’s surge. But this is likely just a convenient point for investors to take profits after a record high,” said Kyle Rodda, analyst at Capital.com.
The drop followed a two-year-long conflict between Israel and Hamas that the United Nations labelled as genocide. The ceasefire and hostage exchange deal, which is part of US President Donald Trump’s Gaza plan, has raised hopes of a lasting peace.
Fed minutes signal rate cuts ahead
Meanwhile, minutes from the US Federal Reserve’s September 16–17 meeting showed officials agreed that the risks to the labour market were high enough to justify a rate cut, even though inflation remains stubborn.
Markets are now pricing in a 94 percent chance of a 25-basis-point rate cut in October and a 79 percent chance of another in December, according to the CME FedWatch tool.
Gold, which pays no interest, typically benefits in a low-rate environment as investors shift away from yield-bearing assets toward safer stores of value.
Safe-haven demand remains strong
Despite Thursday’s decline, gold has still gained 54 percent so far this year, supported by massive central bank purchases, increased demand for gold-backed exchange-traded funds (ETFs), a weaker dollar and global uncertainty.
This week, markets have been unsettled by political turmoil in Japan and France and a continuing US government shutdown, prompting a fresh flight to safety.
Elsewhere, silver dipped 0.1 percent to $48.83 per ounce after hitting an all-time high of $49.57 on Wednesday. Platinum fell 0.8 percent to $1,649.81, while palladium edged 0.1 percent lower to $1,447.81.
Gold prices hit record in Pakistan too
In Pakistan, gold prices also surged to new all-time highs on Wednesday, mirroring the global rally. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold jumped by Rs8,400 per tola, reaching Rs425,178. The rate for 10 grammes rose by Rs7,202 to Rs364,521.
The local market’s rally followed a steady rise over the past week. On October 1, gold stood at Rs410,278 per tola and has since gained nearly Rs15,000 within eight days. The increases have closely tracked international price movements, reflecting both global uncertainty and domestic currency weakness.
Gold prices in Pakistan had closed Tuesday at Rs416,778 per tola after gaining Rs1,500, before Wednesday’s surge pushed them to record levels.