Gold prices fall after record high: Profit booking rises; silver and platinum slide

Spot gold fell about 0.3% to trade near $4,608 per ounce, retreating from Wednesday’s all-time high of $4,642.72 per ounce. US gold futures for February delivery dropped around 0.5% to $4,613. Analysts said the decline was largely profit booking, following the strong rally driven by geopolitical risks and economic uncertainty.

Investor demand for gold softened after President Donald Trump indicated that the US may not immediately intervene in Iran. He also said he had no plans to remove Federal Reserve Chair Jerome Powell. These comments calmed markets, reducing fears of political or geopolitical shocks that had supported gold in recent weeks.

Despite Thursday’s losses, analysts said gold remains well-supported. Traders continue to price in two possible interest rate cuts by the Federal Reserve later this year. Lower interest rates make non-yielding assets like gold more attractive. Markets are also watching upcoming US jobless claims for hints on the Fed’s future policy path.

Other precious metals experienced steeper losses. Spot silver fell more than 3% to $89.63 per ounce after reaching a record above $93 earlier in the day. Platinum dropped around 2.6% to $2,321, and palladium slipped about 1.3% to $1,804. Traders attributed the declines to profit booking after strong recent gains.

1. Why did gold prices fall on Thursday?
   Gold declined mainly due to profit booking after hitting record highs and easing safe-haven demand.
2. How did Donald Trump’s remarks influence gold markets?
   His softer stance on Iran and reassurance about the Federal Reserve reduced market fears, lowering demand for gold.
3. Is the long-term outlook for gold still positive?
   Yes. Anticipated US interest rate cuts and ongoing global risks continue to support gold prices.