Gold Slips From Record Highs as Traders Take Profits Ahead of Fed Decision

Core Insights - Gold prices experienced a significant decline of over 2% this week, ending an eight-week winning streak due to heavy profit-taking by investors [3][7] - The market saw substantial outflows from gold ETFs, which contributed to the weakening buying momentum and pushed gold prices briefly down to $4,100/oz [5][7] - A softer-than-expected Consumer Price Index (CPI) report released on Friday helped revive optimism for another Federal Reserve rate cut, stabilizing gold prices above $4,100 [6][7] - The upcoming Federal Open Market Committee (FOMC) decision is highly anticipated, with traders closely monitoring remarks from Fed Chair Powell amid the ongoing government shutdown [7] Market Dynamics - The recent surge in speculative buying in gold has retreated, with investors focusing on locking in profits as gold prices approached all-time highs [3][4] - The "quiet period" before the FOMC meeting has led to a slowdown in updates regarding interest rate decisions, contributing to a lack of new upward momentum for gold prices [4][5] - The easing of trade war tensions and muted headlines regarding tariffs on Chinese imports have also contributed to the risk-off sentiment in the market [4][5]