Gold retreats 1% at close amid profit-taking, higher dollar

Gold Futures for the December contract fell 1% to $3,678.30 an ounce

Gold prices declined on Thursday as investors booked profits after the metal hit a record high in the previous session, buoyed by the US Federal Reserve’s interest rate cut.

December gold futures settled 1% lower, or down $39.50, at $3,678.30 an ounce.

The yellow metal came under pressure from a stronger US dollar rising 0.5% to 97 points by 10:00 pm KSA time.

Profit-taking also swept through gold markets after Fed Chair Jerome Powell cast doubt over the pace of further monetary easing, despite policymakers voting on Wednesday to deliver their first rate cut of 2025.

Powell warned that inflationary pressures persist alongside a deteriorating labor market, calling the rate cut as a precautionary step to manage risks.