The rise of precious metals pauses! Gold falls below 4500, palladium futures hit the limit down, silver fluctuates at a high level

After a record surge, the precious metals market collectively entered a technical adjustment on Thursday. Gold fell below $4,500 after reaching an all-time high during the session, while domestic palladium futures contracts hit the limit down, and silver maintained high volatility after refreshing its historical high.

Spot gold has currently dropped to $4,479.38 per ounce, having previously touched a historical peak of $4,525.18. Palladium fell more than 9%, retreating from a three-year high. In the domestic market, the main palladium futures contract on the Shanghai Futures Exchange hit the limit down, dropping about 10% at one point, while the main platinum futures contract fell over 8% at one point.

Kitco Metals senior analyst Jim Wyckoff stated that the gold market is undergoing a technical adjustment and moderate profit-taking. Gold typically performs well in low-interest-rate environments and periods of uncertainty.

U.S. President Trump stated on Tuesday that he hopes the next Federal Reserve chairman will lower interest rates when the market performs well. The Federal Reserve has cut rates three times this year, and traders currently expect two rate cuts next year. On the geopolitical front, the U.S. Coast Guard is awaiting reinforcements to arrive in Venezuela.

Gold Profit-Taking, Technicals Still Bullish

After breaking through the key $4,500 level, the gold market experienced a technical adjustment. Despite the short-term pullback, analysts remain optimistic about the future. Wyckoff pointed out that the next upward target for the gold market is $4,600 per ounce, expected to be reached by the end of the year, with technicals still showing a bullish trend.

Gold has accumulated a rise of over 70% this year, benefiting from expectations of Federal Reserve rate cuts and ongoing geopolitical tensions. The low-interest-rate environment supports non-yielding gold assets, while global uncertainty drives safe-haven demand.

Silver Continues to Hit New Highs, Year-to-Date Gains Far Exceed Gold

Silver has performed even stronger, reaching a historical high of $72.70 during the session, and then maintaining around $71.80, up 0.49% for the day. Silver prices have surged 149% this year, far exceeding gold's 70% increase, with strong fundamentals supporting its performance.

Wyckoff expects the next upward target for silver to be $75 per ounce, also likely to be achieved by the end of the year. The dual characteristics of silver's industrial demand and investment properties have allowed it to gain greater increases in this round of the precious metals bull market.

Platinum and Palladium Metals Experience Significant Pullback, High-Position Profit-Taking Emerges

Platinum turned down after reaching a peak of $2,377.50, closing down 2.4% at $2,220.44. Palladium experienced a more severe pullback, falling over 9% to $1,683.58 per ounce, significantly retreating from the earlier three-year high Platinum and palladium are primarily used in automotive catalytic converters to reduce emissions, rising approximately 145% and over 85% respectively this year. The surge in these two metals is mainly driven by tight mineral supply, tariff uncertainties, and the rotation of gold investment demand towards other precious metals. The sharp adjustment in the domestic market reflects the concentrated release of profit-taking pressure at high levels