Gold Prices Slip as Global Stock Rally Pauses Amid Inflation Concerns

Gold experienced its steepest decline in five years as investors locked in profits ahead of key US inflation data and an anticipated Federal Reserve rate cut. Despite this short-term pullback, the rally in precious metals is supported by ongoing geopolitical tensions, expectations of lower US interest rates, and persistent inflation concerns, with inflows in gold ETFs signaling continued long-term investor interest. The US stock market showed signs of fatigue after a strong rally, as investors awaited inflation updates and digested mostly positive earnings, while the strengthening dollar pressured gold and silver prices lower. Shares of major gold miners also fell in response to the drop in bullion prices, reflecting profit-taking after recent record highs. The broader market sentiment remains cautiously optimistic, with dips viewed as buying opportunities amid a backdrop of economic uncertainty, government shutdown risks, and global trade tensions. Overall, gold's resilience in 2025 underscores its role as a safe haven and portfolio diversifier amid fluctuating macroeconomic conditions and geopolitical developments.