Gold Prices Drop to $4,015 per Ounce

SadaNews - Gold prices dropped after reaching a new record level above $4,000 per ounce on Wednesday, following a sharp rise that made prices vulnerable to downward corrections, amidst indications that the precious metal is trading at excessively strong levels.

Gold bullion prices fell by 0.7% in early Asian trading on Thursday, trading near $4,015 per ounce, after closing up 1.4% in the previous session.

Technical indicators show that gold has been trading in an "overbought" zone for about a month, suggesting that some investors have begun to take profits following a four-day consecutive rise.

Agreement to End Gaza War

Meanwhile, the appeal of gold as a safe haven has diminished after U.S. President Donald Trump stated that a peace agreement in the Middle East is "very close." Concurrently, Trump announced that Israel and "Hamas" reached a consensus during ongoing negotiations in Egypt on the first phase of an agreement to end the two-year war in Gaza.

Despite the slight drop, gold is still up more than 50% since the beginning of the year, supported by a mix of factors including uncertainty surrounding global trade, the independence of the Federal Reserve, and the stability of U.S. public finances.

Rising geopolitical tensions have also contributed to bolstering demand for safe-haven assets this year, while central banks continued purchasing the metal at high levels.

Spot gold fell by 0.7% to $4,014.24 per ounce at 7:29 AM in Singapore, after reaching its new historical peak of $4,059.31 per ounce. The "Bloomberg Spot Dollar Index" remained largely unchanged.

Platinum and palladium prices also declined on Thursday following strong gains in the previous session. The market continues to suffer from supply shortages, while flows into ETFs backed by these metals have supported prices. Silver fell slightly but remained close to its all-time high, according to real-time "Bloomberg" data dating back to 1993.