Gold prices eased slightly on Monday, hovering around the key $2,500 level as traders took profits following the precious metal’s all-time high in the previous session. Spot gold fell 0.3% to $2,501.03 per ounce, while U.S. gold futures edged up 0.1% to $2,539.80.
The recent surge in gold was driven by expectations of a U.S. Federal Reserve interest rate cut in September, along with heightened geopolitical tensions and strong central bank buying. Gold reached a record $2,509.65 on Friday, marking a 20% increase this year.
“Gold has been chasing the psychological $2,500 level, and now that it has been reached, we are seeing some natural profit-taking,” said Tim Waterer, KCM Trade’s chief market analyst.
Traders are now focused on upcoming remarks by Fed Chair Jerome Powell and the minutes of the Fed’s July meeting for further guidance.