Gold prices suddenly drop from the peak as investors rush to take profits

Spot gold prices fell 0.6% to $3,538.56/ounce at 6:37 GMT. The December US gold futures fell 1.1% to $3,596.2 an ounce. Gold hit a record high of $3,578.50 on Wednesday.

Mr. Brian Lan - Director of Gold Silver Central - commented: "We are witnessing a profit-taking, but gold is still in an uptrend. Expectations of interest rate cuts and concerns about the independence of the US Federal Reserve (FED) will continue to boost safe-haven demand."

The US Department of Labor said on Wednesday that the number of jobs vacant in July fell more than expected to 7.181 million.

Many Fed officials believe that concerns about the labor market further consolidating the view of interest rate cuts are inevitable. FED Governor Christopher Waller said he believes the central bank should cut interest rates at its meeting next month.

The market is currently focusing on US non-farm payroll data, which could provide a clearer signal about the Fed's monetary policy. Gold - which is not yielding - often benefits in a low interest rate environment.

In the case of private investors sharply increasing their diversification into gold, we see the potential for gold prices to surpass the $4,000/ounce base by mid-2026, said Goldman Sachs. Therefore, gold is still our most reliable long-term buying recommendation."

Increasing market anxiety, US President Donald Trump said that the US could have to cancel trade agreements signed with the European Union, Japan, South Korea and other countries if the country loses a lawsuit in the Supreme Court over tariffs.

In other developments, spot silver fell 0.8% to $40.85 an ounce, after hitting its highest level since September 2011 in the previous session. platinum fell 1% to $1,407.10, while gold lost 0.8% to $1,138.11.