Gold prices pulled back about 0.7 % to $4,323.69 an ounce after reaching a fresh high of $4,381.21 the prior day, as investors took profits and the U.S. dollar gained strength.

Support for gold has been strong in recent months, driven by expectations of further interest-rate cuts by the Federal Reserve and broad safe-haven demand amid global uncertainty. However, the recent dollar uptick and profit-taking suggest a short-term cooling in momentum.

Analysts say the pull-back may present buying opportunities, provided inflation data and the Fed’s policy path remain favourable. The upcoming U.S. Consumer Price Index (CPI) release is expected to be a key driver of next moves in bullion.

Other precious metals also edged lower silver, platinum and palladium each slipped as speculative flows eased and markets prepared for data ahead of policy decisions.

Despite the brief pause, the longer-term outlook for gold remains underpinned by geopolitical risks, monetary easing and demand from central banks. But investors caution volatility may increase if inflation surprises or rate-cut expectations are delayed.

Source: Reuters.