Gold Falls Below $4,000 as Gaza Ceasefire Triggers Profit-Taking
Gold and other precious metals slipped from record highs on Friday, as improving risk sentiment following the Israel–Hamas ceasefire prompted investors to take profits.
Bullion prices recorded steep losses overnight and remained under pressure during the Asian trading session, weighed down by renewed U.S. dollar strength.
A combination of rising dollar demand, weakness in the yen and euro, and uncertainty over U.S. interest rates supported the dollar’s gains this week.
By 01:13 ET (05:13 GMT), spot gold had fallen 0.2% to $3,970.88 per ounce, while December gold futures rose 0.3% to $3,985.20 per ounce.
Earlier in the week, spot prices had topped $4,000/oz for the first time, briefly reaching a record $4,059.32/oz before retreating.
Ceasefire Eases Tensions, Dampens Safe-Haven Demand
Gold’s rally paused soon after the signing of a U.S.-brokered ceasefire deal between Israel and Hamas, marking the first stage of a 20-point peace plan introduced by President Donald Trump.
The agreement represents one of Washington’s most comprehensive peace efforts in the region in years.
However, easing geopolitical tensions have reduced demand for safe-haven assets like gold.
Other precious metals mirrored the decline, pulling back after tracking gold’s impressive gains earlier this week.
Spot platinum slipped from a 13-year high, trading around $1,603.92/oz, while spot silver stabilized at $49.66/oz after briefly crossing $51/oz on Thursday to hit a record.
Despite the pullback, gold remains up 2.3% this week, marking its eighth straight week of gains.
Silver rose 3.5%, while platinum traded flat, signaling resilience in broader precious metal markets.
Analysts See Only Temporary Weakness in Gold
Analysts at ANZ Bank said the latest dip in gold prices is mainly due to profit-taking after a “meteoric rise” in recent weeks.
They expect the correction to be short-lived and shallow, emphasizing that structural drivers continue to favor higher prices ahead.
“We still see long-term support for gold,” ANZ analysts wrote, noting that the Federal Reserve is likely to continue its easing path amid slowing employment growth.
They also pointed to persistent U.S. political uncertainty and the ongoing government shutdown as factors that will keep investors cautious, reinforcing gold’s appeal as a safe-haven asset.
