Gold prices saw a slight decline on Thursday as investors moved to lock in profits following a significant rally during the previous session. The precious metal, which had earlier touched its highest point since June 2, dipped by 0.3% to $4,509.91 per ounce. Market analysts attribute this cooling period to routine profit-taking after Wednesday’s impressive 4% surge, alongside renewed market anxiety surrounding rising oil prices and a hawkish tone reflected in the latest Federal Reserve meeting minutes.

While gold is traditionally viewed as a hedge against inflation, the current economic landscape remains complicated by the prospect of higher interest rates, which often diminish the appeal of non-yielding assets. Furthermore, the ongoing rally in oil prices, fueled by supply concerns in the Middle East, has reignited worries about persistent inflation. Despite these near-term headwinds, some experts remain optimistic about gold’s long-term trajectory, with Morgan Stanley analysts suggesting that the metal could potentially reach the $5,000 per ounce mark as the Federal Reserve weighs its future policy decisions.