Gold prices pared gains after reaching a fresh record, with traders booking profits amid speculation that the US government might revalue its bullion holdings. US Treasury Secretary Scott Bessent dismissed this idea in comments, saying it was “not what I had in mind.” The move appeared to calm market sentiment and allowed gold to fall back from its all-time high of $2,954.84 an ounce.
However, some analysts believe that profit-taking may have been the primary driver behind the decline. Ole Hansen, head of commodities strategy at Saxo Bank A/S, noted that the market was looking for an excuse to book profits after a recent price surge. Despite this, gold’s underlying support appears intact, which could limit further losses.
The Treasury secretary also stated he has no plans to visit Fort Knox, where much of the US gold reserve is kept, and said “all the gold is there.” Trump has expressed his intention to ensure that the reserves are accounted for and accurate. The decline in gold prices followed a flight to safe-haven assets amid geopolitical tensions and concerns about Trump’s trade and geopolitical agendas.
Despite these challenges, analysts predict that gold prices will continue to rise, with Goldman Sachs Group Inc. raising its year-end target to $3,100 an ounce. As of 10:07 a.m. in New York, spot gold was up 0.1% at $2,936.02 an ounce.
Source: https://finance.yahoo.com/news/gold-hits-fresh-record-geopolitical-063031787.html