Gold Eases After Gaza Ceasefire but Holds Firm Above $4,000 Level
Gold prices slipped slightly during Asian trading hours on Thursday, as a newly brokered ceasefire between Hamas and Israel reduced safe-haven demand. However, the yellow metal remained near record highs, reflecting ongoing concerns over global economic and political risks.
Despite the modest decline, bullion stayed supported by uncertainty surrounding Japan’s fiscal stability, the prolonged U.S. government shutdown, and France’s political turmoil. Additionally, dovish remarks from the Federal Reserve’s September meeting minutes fueled optimism over potential interest rate cuts, adding further support to precious metals.
By 01:30 ET (05:30 GMT), spot gold fell 0.1% to $4,039.34 per ounce, while gold futures for December slipped 0.3% to $4,056.67/oz. Earlier in the session, spot gold briefly hit a record high of $4,059.34, marking its first-ever break above the $4,000/oz level.
Gold Rally Pauses as Gaza Truce Eases Risk Sentiment
The gold rally cooled as investors took profits following news of a U.S.-brokered ceasefire between Israel and Hamas, which reduced geopolitical tension and safe-haven demand.
According to reports, both sides agreed to the first phase of a 20-point framework proposed by U.S. President Donald Trump, outlining a roadmap for a full Israeli withdrawal from Gaza and eventual Palestinian governance of the region. The deal, if fully implemented, could represent the most significant progress toward peace in years.
The ceasefire news also led to a drop in oil prices and a rally in risk-sensitive assets, such as equities.
Rate Cut Expectations Support Broader Metal Markets
Elsewhere in the metals market, prices showed mixed movement. Still, most remained strongly supported by expectations of a Federal Reserve rate cut in October.
Spot platinum traded flat at $1,660.98/oz after touching decade highs earlier in the week, while spot silver rose 0.5% to $49.11/oz, approaching its record level near $50/oz.
HSBC recently raised its silver price forecast, predicting that the metal could soon reach a new all-time high.
According to the CME FedWatch Tool, markets are pricing in nearly a 100% probability of a 25 basis point rate cut by the Fed next month. Lower rates typically increase the appeal of non-yielding assets like gold and silver, as bond yields decline.
Traders now await a speech from Federal Reserve Chair Jerome Powell later Thursday for additional insights into the central bank’s policy outlook.
