Gold prices slipped on Thursday, but stayed above the $4,000-per-ounce mark.
Among other precious metals, silver prices fell more than 1%, tracking gold’s losses.
Palladium prices were 2% higher, while platinum dipped 0.5% from the previous close.
Oil prices slid as Israel and Palestinian militant group Hamas agreed to a ceasefire in Gaza, alleviating supply concerns.
Gold remains above $4,000
This week, gold reached an unprecedented milestone, surpassing $4,000 an ounce.
This week’s price increase positions gold for its strongest annual performance since the 1979 Iranian Revolution, reinforcing its role as a key indicator of global geopolitical and economic trends.
Gold has risen 53% so far this year, which follows a 27% increase in 2024.
Driven by global uncertainties, gold has experienced a consistent climb as investors seek a secure store of value.
Ongoing conflicts in the Middle East and between Russia and Ukraine, coupled with political shifts in the US, Japan, and France, have fueled the surge in demand for gold.
Additionally, expectations of further US interest rate cuts have contributed to gold’s upward trend.
Gold prices fell 1% on Thursday after Wednesday’s record intra-day high.
Mainstream media interest has surged, especially after gold surpassed $4,000 on Wednesday.
This could potentially spark a new wave of buying as retail investors eagerly join the latest gold rush, according to David Morrison, senior market analyst at Trade Nation.
It’s certainly possible, although such interest is likely to be in coins, jewellery and bullion.
“Nevertheless, every little helps. It looks as if gold may be consolidating after two months of relentless gains,” Morrison added.
Silver prices
Spot silver surged to a new 14-year high, disregarding gold’s pause in its rally this morning.
Spot silver is just 0.5% under its all-time high, just below $50 per ounce.
Meanwhile, prices on COMEX hit a record high of $49.955 per ounce earlier in the day.
“This is an extremely significant level for silver, and it’s possible that it meets some hefty resistance around here,” Morrison said.
But traders will also note how easily it broke above $40 and $45 in September, and the bulls will be hoping to repeat the process again.
Buyers continued to dominate silver’s price action, maintaining a positive overall tone.
Similar to gold, silver’s daily MACD indicates that each rally pushes the market further into overbought territory, according to Morrison.
So far, the bulls don’t seem to care.
However, silver prices have slipped from the highs reached earlier on Thursday, with prices now trading nearly 3% down below $48 an ounce.
Oil slide
Oil prices saw a slight dip on Thursday, following the ceasefire agreement between Israel and the Palestinian militant group Hamas in Gaza.
On Thursday, an agreement was reached between Israel and the Palestinian militant group Hamas for a ceasefire and the exchange of Israeli hostages for Palestinian prisoners.
This agreement marks the initial phase of US President Donald Trump’s plan to bring an end to the conflict in Gaza.
An agreement would lead to a cessation of hostilities, a partial Israeli withdrawal from Gaza, and the release of all remaining hostages held by Hamas since the initial attack that started the war.
In return, Israel would release hundreds of its own prisoners.
The Middle East peace agreement marks a significant turning point with potential far-reaching impacts on global oil markets, according to Rystad Energy’s Chief Economist Claudio Galimberti.
A key implication is the possible reduction of Houthi attacks in the Red Sea, which have previously disrupted shipping and supply chains, he said in an emailed commentary.
Furthermore, the agreement could increase the chances of a nuclear deal with Iran, potentially leading to Iran boosting its crude oil and product exports.
These developments could significantly alter the supply-demand dynamics and pricing in the international oil market.
“Yet, the devil is always in the details, and I would avoid speculating right now due to the many false starts that we have witnessed in the past,” Galimberti added.
As of today, the immediate impact on the oil markets will be a slight decrease in the geopolitical risk premium – about 1-2% of the current Brent price – as the markets figure out the details of the peace plan.
At the time of writing, the West Texas Intermediate oil price was at $61.72 per barrel, down 1.4%, while Brent was down 1.3% at $65.38 a barrel.
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