Gold Retreats After Crossing $4,600 as Investors Book Profits

Gold prices slipped on Tuesday after touching an all-time high above $4,600 per ounce in the previous session, as investors chose to book profits amid ongoing geopolitical tensions and global economic uncertainty.

Spot gold declined 0.4 percent to $4,576.79 per ounce by 0134 GMT, after surging to a historic peak of $4,629.94 on Monday. The precious metal’s strong rally in recent weeks has been driven by safe-haven demand, with investors seeking protection against rising geopolitical risks and concerns over the global economic outlook.

In the futures market, U.S. gold contracts for February delivery fell 0.6 percent to $4,585.40 per ounce, reflecting a broader pause in the rally as traders reassessed their positions after the sharp climb to record levels.

Other precious metals also came under pressure following their recent highs. Spot silver dropped 1.6 percent to $83.62 per ounce, a day after hitting a record peak of $86.22. The metal had benefited from strong investor demand and broader strength across the commodities market before facing profit-taking.

Platinum saw a sharper decline, falling 2.5 percent to $2,283.95 per ounce. The metal had previously surged to a record high of $2,478.50 on December 29, but recent sessions have seen increased selling as traders lock in gains from the rally.

Palladium also moved lower, sliding 3.7 percent to $1,774.44 per ounce, extending losses after failing to sustain higher levels.

Market analysts say the pullback across precious metals is largely a technical correction following an exceptional rally, rather than a shift in the broader outlook. With geopolitical risks still elevated and economic uncertainty persisting, demand for safe-haven assets like gold is expected to remain strong, even if short-term price swings continue.

For now, investors appear to be taking a breather after gold’s historic run, while keeping a close watch on global developments that could once again drive prices higher.