Gold pauses record rally on Thursday

Gold eased to around $4,020 per ounce on Thursday, halting its record-breaking rally as investors took profits following a surge to all-time highs earlier in the week.

The modest pullback came amid easing geopolitical tensions and reduced safe-haven demand after President Donald Trump announced that Israel and Hamas had agreed to the first phase of a US- and Qatari-brokered peace deal.

The agreement, confirmed by Israeli officials, Hamas, and Qatari mediators, includes a temporary ceasefire and the release of hostages, marking a potential breakthrough in ending the two-year conflict.

Markets responded with cautious optimism, trimming risk hedges built up over recent months.

Despite the pause, gold’s broader bullish momentum remained intact, underpinned by persistent macroeconomic uncertainty and expectations of continued monetary easing by the Federal Reserve.

The ongoing US government shutdown—now in its second week—has disrupted key economic data releases and heightened concerns about potential public-sector furloughs and weaker Q4 growth. Private indicators have already shown cracks in the labor market, with ADP data reporting a contraction in private payrolls and the ISM’s employment index signaling further weakness in manufacturing.

Minutes from the latest FOMC meeting reinforced the dovish tone, revealing that several policymakers see rising risks to employment that may warrant additional rate cuts in the coming months.

Inflation, meanwhile, remains elevated due to tariff-related pressures and resilient services costs, sustaining investor appetite for precious metals as a hedge against currency depreciation and real yield compression.

Analysts noted that while short-term volatility may persist, gold’s fundamental drivers—low real interest rates, strong central bank buying, and lingering geopolitical fragility—continue to support a constructive outlook heading into year-end.