Gold is taking a breath after a wave of record highs

Gold prices took a breather on Friday after a wave of record highs that lasted for five sessions and led the yellow metal to record gains for the third week in a row.

According to Reuters, gold fell in spot transactions by 0.5% to $2,278.50 per ounce by 0328 GMT, after hitting a record high of $2,305.04 on Thursday. US gold futures also fell 0.5% to $2,296.90.

“Gold will continue to rise with natural declines,” said Luca Santos, an analyst at ACY Securities.

Santos added that the dollar’s decline in light of investors’ expectations that the Federal Reserve would cut interest rates this year, economic uncertainty, and escalating tensions in the Middle East were factors that formed a driving force for the markets, led by gold.

The precious metal is heading to record gains for the third week, also supported by strong purchases by central banks and demand from funds that keep pace with market trends.