Spot gold was down 0.5 per cent at $3,845.78 per ounce

Gold prices dropped nearly 1 per cent on Thursday, retreating from a record high hit earlier in the session.

Spot gold was down 0.5 per cent at $3,845.78 per ounce by 1815 GMT. U.S. gold futures for December delivery settled 0.8 per cent lower at $3,868.1.

Gold is lower after the comments. While one Fed governor isn’t going to necessarily set the tone for what the whole Fed is going to do, it throws some caution in the market on how aggressive the Fed is going to be in their next meeting, said RJO Futures market strategist Bob Haberkorn.

Traders are pricing in a 99 per cent probability that the U.S. central bank will cut rates further at its meeting this month.

Gold, viewed as a safe-haven asset during times of uncertainty, thrives in a low-interest-rate environment. It has gained 47 per cent so far this year.

Spot prices had hit a record high of $3,896.49 earlier in the session amid the ongoing U.S. government shutdown.

The shutdown extended to a second day on Thursday, potentially delaying economic data releases, including the non-farm payrolls (NFP) report due Friday. The weekly jobless claims report, a gauge of labour market health that was due on Thursday, was also not released.

With trade tensions and tariffs impacting the global landscape, and with geopolitical hotspots showing little sign of resolution, the environment remains supportive for safe-haven demand, financial services firm StoneX said in a note.

Gold remains Goldman Sachs’ highest-conviction long commodity recommendation, the bank said in a note on Wednesday, adding that upside risks to its $4,000 per ounce mid-2026 and $4,300/oz December 2026 gold price forecast have intensified.