Gold’s record-breaking rally paused during Thursday's Asian deals, but the precious metal held above the psychological US$4,000 mark as traders turned their attention to upcoming comments from United States Federal Reserve Chair Jerome Powell.
By 4:30 pm AEDT (5:30 am GMT), spot gold dipped $3.87, or 0.1%, to US$4,038.25 per ounce, retreating from its all-time high of $4,059 reached on Wednesday.
The pullback followed reports that Israel and Hamas had signed off on the first phase of a peace plan, reducing demand for safe-haven assets.
However, the broader backdrop of global instability continued to support bullion. Ongoing political strains in France and Japan, alongside expectations of renewed fiscal stimulus, have kept investors wary of risk assets.
Meanwhile, the CME Group FedWatch Tool shows traders fully expecting a rate reduction in October, with an 80% probability of another in December.
Although minutes from the Fed’s September meeting revealed divisions among policymakers, markets interpreted the tone as leaning dovish.
In the absence of major U.S. economic data, investors are awaiting remarks from Powell, who is due to deliver a pre-recorded video address at the Federal Reserve Board’s Community Bank Conference in Washington, D.C., later in the day.
