- Gold dropped about 1% to $4,507 per ounce, reflecting profit-taking and shifting rate expectations.
- The decline comes amid a stronger dollar and higher real yields, pressuring the non-yielding asset.
- Analysts see the metal consolidating in a $4,000-$4,500 range, with upside risks if central-bank buying resumes.
Gold slid roughly 1% on Thursday, settling near $4,507 an ounce, as a firmer dollar and rising real yields weighed on the precious metal. The move extends a period of volatility that has seen bullion swing sharply in recent weeks, driven by changing bets on Federal Reserve policy and global risk sentiment.
“The market is taking a breather after a strong run,” said one metals trader, speaking on condition of anonymity. “We’re seeing some profit-taking ahead of key inflation data next week.”
The dollar index edged higher, while 10-year Treasury yields climbed, reducing gold’s appeal as an inflation hedge. The metal, which hit an all-time high above $5,000 earlier this year, has since retreated as markets priced in a more cautious Fed stance.
Central banks remain a key pillar of demand, with purchases from China and India supporting prices. But ETF outflows have accelerated in recent weeks, signaling a shift in sentiment among institutional investors.
“Gold is in a consolidation phase,” said a precious metals strategist. “If the dollar weakens or geopolitical tensions escalate, we could see a test of $5,000 again. But for now, the $4,000-$4,500 range looks likely.”
Market participants are now focused on next month’s nonfarm payrolls report and inflation data for clues on the Fed’s next move. A dovish pivot could reignite gold’s rally, while a hawkish surprise might push prices toward $4,300.
Correction: An earlier version of this article misstated the percentage decline. Gold fell 1%, not 0.7%.