Gold falls after scaling record peak as markets digest Fed Chair Powell's comments

Core Insights - Gold prices experienced a decline of nearly 1%, retreating from a record high of $3,707.40 per ounce, settling at $3,658.25 per ounce, despite a 6% increase so far this month [1][4] - The Federal Reserve cut interest rates by 0.25 percentage points and indicated a steady reduction in borrowing costs for the remainder of the year, leading to profit-taking in the gold market [2][3] - Analysts suggest that gold's price surge this year is supported by central bank purchases, diversification from the U.S. dollar, safe-haven demand amid geopolitical tensions, and a weaker dollar, with a 39% increase in gold prices year-to-date [4] Market Reactions - Spot silver decreased by 2.4% to $41.51 per ounce, platinum fell by 2.2% to $1,360, and palladium dropped by 2.6% to $1,145.44, indicating a broader decline in precious metals [5]