Gold prices recorded a modest decline during today’s trading after touching record highs in the previous session, as some traders moved to trim positions and lock in profits, alongside a slight improvement in the U.S. dollar. Despite this pullback, the broader backdrop remains supportive for the precious metal, driven by ongoing geopolitical risks and growing expectations of further monetary easing in the United States.
Spot gold traded near $4,513 per ounce with a marginal decline, after having posted an all time high of $4,549 per ounce at the end of last week. Meanwhile, U.S. gold futures for February delivery edged slightly lower to settle around $4,536 per ounce, reflecting a cooling in momentum following strong recent gains.
Gold ended last week up more than 4.5%, supported by rising bets that the Federal Reserve will move toward cutting interest rates in the coming year, particularly as signs of easing inflationary pressures emerge. These expectations have led markets to price in a more accommodative monetary path in 2026, enhancing gold’s appeal by reducing the opportunity cost of holding non yielding assets.
Throughout 2025, gold has delivered an exceptional performance, posting gains exceeding 72% year to date. This surge has been underpinned by aggressive central bank purchases, sustained inflows into gold backed exchange traded funds, continued geopolitical uncertainty, and increased investor demand for hedging against currency volatility and broader macroeconomic risks.
At the start of the week, however, prices showed some moderation following the failure of international talks aimed at ending the war in Ukraine to achieve tangible progress. While a comprehensive and lasting peace agreement could weigh on gold prices over the medium term, the absence of concrete developments has so far limited any downside impact.
In other metals, silver continued its strong performance, reaching a new record high supported by robust industrial demand alongside its role as a hedge. Platinum saw a mild pullback after reaching historic peaks, influenced by supply side factors and improving demand prospects across industrial and automotive sectors.
Copper also recorded a sharp rally, with prices on the London Metal Exchange climbing to unprecedented levels, driven by supply chain disruptions and rising industrial demand. This strength was echoed in U.S. copper futures, which extended gains during the session.
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