why is gold dropping today

Gold is dropping today mainly due to profit-taking by investors following its recent surge to record highs above $4,000 an ounce. This pullback is also influenced by a stronger US dollar, which increases the cost of dollar- denominated gold for international buyers. Additionally, easing geopolitical tensions, marked by a ceasefire deal between Israel and Hamas, have reduced the safe-haven demand that had been driving gold prices higher. Despite this dip, the overall bullish outlook remains intact due to factors such as central bank buying, expectations of US Federal Reserve rate cuts, and high global sovereign debt levels creating long-term demand for gold as a hedge.