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.
Spot gold 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 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, 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 added 0.1% to $48.91 per ounce, after hitting an all-time high of $49.57 on Wednesday. Platinum slipped 0.7% to $1,650.60 and palladium dropped 1% to $1,435.25.
