PRECIOUS-Gold pauses after record rally on safe-haven demand
Oct 9 (Reuters) - Gold eased on Thursday, as investors booked profits a day after bullion breached the crucial $4,000-per-ounce level to hit a record high on economic and geopolitical uncertainties and hopes of additional U.S. interest rate cuts.
FUNDAMENTALS
* Spot gold XAU= fell 0.4% to $4,021.99 per ounce as of 0117 GMT, after hitting a record high of $4,059.05 on Wednesday.
* U.S. gold futures GCcv1 for December delivery fell 0.7% to $4,042.60.
* Federal Reserve officials agreed that risks to the U.S. job market had risen enough to warrant a rate cut, but remained cautious amid persistent inflation and debate over how much borrowing costs are weighing on the economy, minutes of the September 16–17 meeting showed on Wednesday.
* Markets are pricing in an additional 25-basis-point cut each in October and December, with probabilities of 95% and 83%, respectively, per the CME FedWatch tool.
* Non-yielding gold thrives in a low-interest-rate environment and during economic uncertainties.
* Markets this week have grappled with political turmoil in Japan and France alongside an ongoing U.S. government shutdown, all of which have done little to stoke confidence in investors, who have sought safety in gold.
* Gold has climbed 54% year-to-date on strong central bank buying, increased demand for gold-backed Exchange-Traded Fund (ETFs), a weaker dollar and growing interest from retail investors seeking a hedge amid rising trade and geopolitical tensions.
* SPDR Gold Trust GLD, the world's largest gold-backed ETF, said its holdings rose 0.14% to 1,014.58 tonnes on Wednesday from 1,013.15 tonnes on Tuesday.
* Elsewhere, spot silver XAG= added 0.1% to $48.91 per ounce, after hitting an all-time high of $49.57 on Wednesday. Platinum XPT= slipped 0.7% to $1,650.60 and palladium XPD= dropped 1% to $1,435.25.
DATA/EVENTS (GMT) | |
0900 | Germany Overall Comprehensive Risk Q4 |
0900 | France Overall Comprehensive Risk Q4 |
0900 | UK Overall Comprehensive Risk Q4 |
Reuters Terminal users can see related news and prices by clicking on the codes in brackets:
All precious metals headlines GOL
Precious metals market reports GOL/
European gold prices GOLD/EU1GOLD/EU20#PREC
London Bullion Market Association LBMA01
New York Comex gold 0#GC: and silver 0#SI:
New York platinum 0#PL: and palladium 0#PA:
Related Articles
Investing in Critical Minerals & Rare Earths
TradingKey - Oil drove the 20th century, but key minerals will drive the 21st. From the lithium in electric vehicle batteries to the rare earths in military equipment and solar panels, these elements are key enablers of the technologies driving the world economy.
Synopsys (SNPS): Strategic Opportunities and Risks Amid 40% Drawdown
Chip giant Synopsys teetering on the edge? The ultimate "pick-and-shovel" supplier in the AI frenzy, but hammered by China's sudden market freeze and export clamps, sending shares crashing 40%! Is that $35 billion Ansys mega-deal a rescue rope or a bigger sinkhole? Dive into the EDA powerhouse's nai-8a7a081ca049441dae56d6b7cc6440c4.jpg)
FOMC October Meeting Minutes: How Should Investors Respond?
In the context of the U.S. government shutdown and a period of limited economic data, the Federal Reserve’s release of its latest monetary policy meeting minutes and officials’ statements on 8 October will be particularly significant.
Is the UK Economy Headed for Collapse? Will Assets Face a "Triple Slump" in Stocks, Exchange Rates, and Bonds?
Many investors and analysts assert that the UK economy is on the brink of collapse, with its assets facing a "triple slump" across stocks, foreign exchange, and bonds.
U.S. Government Shutdown Commentary: Is a Stock Market Crash Imminent? Will Gold Prices Continue to Surge?
TradingKey - On 1 October 2025, the U.S. federal government officially entered a shutdown, impacting various asset classes. This article analyses two key markets most affected—U.S. equities and gold—to help investors identify potential opportunities.
