Profit-taking hits precious metals after a blistering rally.
Gold slipped below the closely watched $4,000 an ounce mark on Thursday, ending a week-long rally that had pushed the metal to record highs. The pullback came as investors locked in profits and as weakness in US equities triggered a broader wave of selling across assets.
The metal’s sharp retreat followed a torrid four-day climb, with momentum indicators showing overbought conditions throughout much of the past month. The pullback was seen as a natural consolidation after an extended rally marked by stretched technicals and signs of investor fatigue. Spot gold fell 1.6% to $3,976, while platinum and palladium also edged lower.
Silver, which has been the standout performer among precious metals this year, also pulled back after reaching $51.24 earlier in the day, its highest level since 1980. The metal’s explosive run has lifted prices by more than 70% in 2025, far outpacing gold’s gains.
By late trading, silver was up 0.8% at $49.29 an ounce, reflecting volatility typical of the metal’s market. Analysts noted that while silver often moves in tandem with gold, its smaller market size and speculative demand amplify swings both ways.
Gold’s selloff coincided with a dip in US equity markets, highlighting a familiar dynamic: during broad market declines, investors sometimes liquidate gold positions to cover losses elsewhere. Despite its reputation as a safe-haven asset, gold can fall alongside stocks when liquidity concerns dominate trading behavior.
The latest slide came after growing fears of fiscal instability in the US, overheating equity valuations, and political tension surrounding the Federal Reserve’s independence, factors that had previously fueled safe-haven demand.
Despite the correction, both gold and silver remain among the top-performing assets of the year. Analysts say the underlying drivers, persistent inflation concerns, central bank buying, and doubts over the sustainability of global debt, continue to support long-term bullish sentiment.
Volatility has not altered the broader narrative. Gold and silver remain the preferred hedges in an uncertain global environment, with the recent pullback viewed as a natural pause following an extended rally.
Global markets on Friday leaned cautiously constructive as traders positioned for a possible Fed rate cut next week, persistent tightness in precious metals, and rising expectations of a BOJ shift.
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