Gold ended its record-breaking nine-week rally with its first weekly loss in ten weeks, as investors took profits and the market reassessed the metal’s rapid surge into overbought territory. Spot gold closed at $4,113.05 an ounce on Friday in New York, marking a weekly decline of 3.3%.
The pullback followed a softer-than-expected US inflation report, which strengthened bets on further monetary easing by the US Federal Reserve. Bond yields inched lower as traders priced in a high likelihood of two interest rate cuts before year-end—a development that typically benefits non-yielding assets like gold.
Investor attention also remains focused on US-China relations, with President Donald Trump and President Xi Jinping scheduled to meet next week to ease trade tensions. Any positive outcome could reduce geopolitical uncertainty that has fueled demand for haven assets including gold.
The gold rally, which began in mid-August and sent prices to an all-time high of $4,381.52 an ounce on Monday, saw a sharp correction the following day. Large outflows from gold-backed exchange-traded funds contributed to the slump, with Wednesday recording the biggest single-day decline in five months. “The correction looks to be stabilizing, but broader retail participation means volatility will likely remain elevated,” said Charu Chanana, strategist at Saxo Capital Markets. Analysts note key resistance levels near $4,148 and $4,236 as indicators of potential upside momentum returning.
Gold is still up 57% this year, supported by central-bank purchases and a so-called “debasement trade,” where investors avoid sovereign debt and currencies to hedge against rising fiscal deficits.
Other precious metals mirrored the market’s turbulence. Platinum jumped as much as 2% before giving back gains, with London markets experiencing tight supply and premiums exceeding $70 an ounce over New York futures. Silver, after reaching a record above $54 an ounce last week, dropped over 6% for the week. Palladium and platinum also posted losses, while the Bloomberg Dollar Spot Index remained largely unchanged.
Market watchers caution that heightened volatility may continue as gold navigates profit-taking, central-bank policy expectations, and ongoing geopolitical developments.