Gold prices experienced a decline on Thursday as investors chose to lock in profits following a significant rise to their highest levels in over two months. This move comes as part of a broader market response to recent economic developments.

As of 10:05 AM Moscow time, spot gold prices fell by 0.61%, trading at $4,488.24 per ounce. Earlier in the session, prices had reached $4,525.79 per ounce, marking the peak since June 2, 2026.

In contrast, gold futures for December saw a slight increase of 0.09%, climbing to $4,549.40 per ounce. This divergent trend highlights differing sentiments and strategies among investors regarding the precious metal's short-term prospects.

The previous day saw an over 4% surge in gold prices, influenced by an unexpected announcement from the U.S. Treasury Department. The department revealed plans to enhance liquidity for long-term bonds, which contributed to a weaker dollar and lowered Treasury yields.

Specifically, the Treasury announced on Wednesday its intention to double the size of repurchase operations aimed at supporting liquidity in long-term bonds. This decision followed a significant sell-off in the bond market, where investors demanded higher yields amid heightened inflation risks stemming from the ongoing U.S.-Israeli conflict with Iran.

Commenting on the situation, Ilya Spivak, Head of Global Macro at Tasty Live, stated: "It's clear there has been a massive rally in gold prices; markets are now entering a period of consolidation after such a substantial move." He further noted that surpassing the price range between $4,400 and $4,500 suggests that if prices stabilize above this threshold, the upward momentum may persist.

Source: Bloomberg + Reuters