Gold Prices Fell from Record Levels Due to Profit Sales

Drop in Gold Prices

Gold experienced a slight decline on Tuesday as investors took profit following a record high price the previous day, driven by expectations that the Federal Reserve will continue its interest rate cuts and strong demand for safe-haven assets.

Spot Gold Prices

Spot gold fell by %0.3 to $4,340.29 per ounce as of TSI 05:48. On Monday, it reached an all-time high of $4,381.21.

Market Analyst's Assessment

KCM Trade Chief Market Analyst Tim Waterer stated, "Profit-taking and a decrease in safe-haven buying have led to a slight weakening in the momentum of gold prices. As long as the Fed continues its current interest rate cut cycle, every pullback in gold will be seen as a buying opportunity."

Fed Rate Cut Expectations

Markets are currently pricing in a quarter-point Fed rate cut this month and another cut in December. Waterer added, "Unless there is an unexpected negative surprise in the US CPI data set to be released later this week, the current rally in gold still has room for upward movement."

Government Shutdown Process and Data Releases

Delayed data due to the US government shutdown is expected to be released on Friday. The government has entered its 20th day as senators were unable to reach an agreement for the tenth time last week. White House Economic Advisor Kevin Hassett indicated that the shutdown is likely to end this week.