^{Photo: Bloomberg}

Gold Retreats After Record Run as Investors Take Profits

Gold prices tumbled on Friday, snapping a powerful rally that had pushed the precious metal to fresh all-time highs just a day earlier. The pullback came as investors moved to lock in gains after one of gold’s strongest year-to-date performances on record.

Spot gold dropped more than 4% to around $5,156 per ounce, retreating from levels near $5,500 reached during the peak of this week’s surge. Even after the decline, gold remains roughly 20% higher for the year, reflecting strong demand driven by expectations of lower interest rates, ongoing geopolitical uncertainty, and sustained central bank buying.

Market strategists described the move as a healthy correction rather than a reversal.

Ed Yardeni, president of Yardeni Research, said a pullback toward the $5,000 level followed by consolidation would be typical behavior in a bull market. He noted that gold’s rapid climb from roughly $3,000 to above $5,500 occurred with virtually no meaningful pause, calling the rally more of a “melt-up” than a classic, step-by-step advance.

Silver followed gold lower, sliding more than 5% to about $110 per ounce. Despite the sharp drop, silver is still up approximately 53% year to date, supported by industrial demand linked to solar energy, electronics, and electric vehicles, alongside its traditional role as a store of value.

Asia-Pacific Markets Mixed as Fed Chair Decision Looms

Equity markets across Asia-Pacific traded unevenly as investors digested the pullback in precious metals and awaited clarity on U.S. monetary leadership.

South Korea led regional gains, with the Kospi rising 1.23% and the tech-heavy Kosdaq adding nearly 1%. Japan’s Nikkei 225 edged up 0.25%, while the broader Topix gained 0.58%. Australia’s S&P/ASX 200 advanced 0.23%.

In contrast, Chinese equities lagged. Hong Kong’s Hang Seng Index slipped 0.71%, and mainland China’s CSI 300 fell 0.51%, weighed down by lingering concerns over property-sector weakness and slowing domestic growth.

Sentiment was also shaped by comments from U.S. President Donald Trump, who said he would announce his pick for the next Federal Reserve chair on Friday, bringing an end to a five-month selection process to replace Jerome Powell. The outcome is being closely watched by global investors, as it could influence the future path of U.S. interest rates and liquidity conditions.

U.S. Shutdown Fears Ease, Futures Drift Lower

U.S. stock futures were modestly lower during Asian trading hours. Futures tied to the S&P 500 and Nasdaq 100 each dipped around 0.16%, while Dow futures slid roughly 112 points, or about 0.2%.

Political risk eased after Trump endorsed a Senate agreement to fund most of the federal government through the remainder of the fiscal year. Lawmakers reached the deal just over a day before a potential partial shutdown, agreeing to pass five funding bills while temporarily extending financing for the Department of Homeland Security through a short-term measure.

The compromise reduced near-term uncertainty for markets, though longer-term fiscal debates remain unresolved.

Wall Street Ends Mixed as Tech Weighs and Crypto Slides

Overnight in the U.S., stocks closed mixed as investors reacted to major technology earnings and the Federal Reserve’s latest policy signals.

The S&P 500 slipped 0.13% to finish at 6,969.01, dragged lower by weakness in large-cap technology shares, including Microsoft, following its earnings release. The Nasdaq Composite fell 0.72% to 23,685.12, reflecting broader pressure on growth stocks.

The Dow Jones Industrial Average bucked the trend, rising 0.11%, or nearly 56 points, to close at 49,071.56, supported by gains in select industrial and defensive names.

In digital assets, bitcoin dropped more than 5%, hitting its lowest level in almost two months. The decline came amid broader risk-off sentiment and profit-taking after a strong run earlier in the quarter.

Bigger Picture: A Pause, Not a Turn

Despite Friday’s pullback in gold and silver, analysts say the broader backdrop for precious metals remains constructive. Expectations that the Federal Reserve could begin cutting rates later this year, combined with persistent inflation concerns, geopolitical tensions, and continued central bank accumulation, are still seen as supportive for bullion over the medium term.

At the same time, equity markets are navigating a complex mix of forces: resilient economic data, slowing inflation, shifting monetary policy expectations, and earnings results that are increasingly separating winners from laggards.

For now, investors appear to be rotating between asset classes, taking profits in overcrowded trades like gold, while selectively positioning in stocks ahead of key policy decisions and economic data in the weeks ahead.

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