The gold has surged more than 31% this year|CC BY-NC 4.0
Gold prices surged to a record high of $2,758.37 on Wednesday before falling 1%. Spot gold dropped 1.2% to $2,714.55 per ounce, influenced by a stronger dollar and rising US Treasury yields.
US gold futures settled 1.1% lower at $2,729.40.
Despite the dip, the precious metal has surged more than 31% this year, driven by interest rate cuts from the Federal Reserve and investors seeking safe-haven assets amid the US election and Middle East conflict.
Bob Haberkorn, a senior market strategist, noted that profit-taking and increasing Treasury yields are challenging gold’s upward momentum. However, he suggests the metal could reach $2,800 per ounce by the end of the week.
As the presidential election approaches, economic uncertainty remains high.
Additionally, the dollar index rose 0.3%, making gold pricier for non-dollar investors, while bond yields reached a three-month high.
In related news, silver dropped 3.6% to $33.58 per ounce, while platinum and palladium also saw declines of 1.8% each.