Gold Edges Lower on Profit-Taking but Holds Above $4,500 per Ounce

New York | EcoPulse24

Gold prices recorded a modest decline in Monday trading, reflecting a technical correction and profit-taking after a strong rally pushed the precious metal to historic highs. Despite this, gold continued to trade above $4,500 per ounce.

According to spot market indicators, gold stood at approximately $4,515 per ounce, down 0.36%, amid subdued risk appetite and investor anticipation of key geopolitical and monetary developments impacting the precious metals market.

This slight pullback coincided with markets following statements from U.S. President Donald Trump, who noted "significant progress" in peace talks with Ukraine. However, he indicated that reaching a final agreement may take several weeks. Trump also expressed readiness to address the Ukrainian parliament and participate in trilateral talks with Ukrainian President Volodymyr Zelensky and Russian President Vladimir Putin, as well as upcoming meetings with European leaders in January.

Ukrainian President Volodymyr Zelensky confirmed that the general framework of the talks has been agreed upon by 90%, stating that security guarantees between the U.S. and Ukraine are fully settled, though some core issues remain under discussion.

Despite the short-term drop, gold is on course for annual gains exceeding 70% in 2025, its strongest performance since 1979. This rally is supported by central bank purchases, ongoing inflows into gold-backed ETFs, persistent geopolitical risks, and U.S. interest rate cuts.

Current market pricing reflects growing expectations of further monetary easing by the Federal Reserve in 2026, which bolsters the medium-term outlook for gold, despite short-term volatility from profit-taking and technical movements.