FX.co ★ Gold Slides Over 4% as Investors Take Profit

Gold experienced a decline of over 4%, reaching approximately $5,140 per ounce, as investors capitalized on profits following a robust surge that elevated prices to a new all-time high of $5,600. This precious metal had been bolstered by diminishing confidence in U.S. assets amidst mounting economic and geopolitical uncertainties. The momentum gained further speed after President Trump minimized the significance of the dollar's decline to its lowest level in four years, suggesting acceptance of a weaker currency, notwithstanding renewed tariff threats and fresh criticism concerning the Federal Reserve's independence. The Federal Reserve maintained interest rates, citing continued economic strength and early indicators of stabilization in the labor market while recognizing the persistent issue of high inflation and an uncertain economic outlook. Meanwhile, geopolitical tensions remain heightened as Iran issued a stern warning to "defend itself and respond like never before" in response to new threats from President Trump, and the EU officially classified Iran’s Islamic Revolutionary Guard Corps (IRGC) as a terrorist organization.