Gold Rebounds After Falling From Record Highs

Gold prices climbed slightly on Monday, recovering some ground after a sharp drop last week from record highs above $4,300 per ounce. The precious metal is trying to stabilize after its biggest single-day decline since mid-May, though it still posted its best weekly performance since April.

Spot gold rose 0.4% to $4,263.59 per ounce by 0203 GMT. This comes after Friday's brutal 1.8% selloff that wiped out gains from the metal's historic peak of $4,378.69 per ounce reached earlier in the week.

The Monday bounce shows investors are still hungry for gold despite the recent volatility. December futures contracts jumped 1.5% to $4,275.40 per ounce, suggesting traders expect the upward trend to continue.

Here's what makes this interesting: Gold has been on a tear this year as investors pile into safe-haven assets amid economic uncertainty and geopolitical tensions. Central bank buying and concerns about inflation have pushed prices to levels that seemed impossible just a few years ago.

But Friday's sharp drop reminds us that even gold can be volatile. When prices move this fast, profit-taking becomes inevitable. Some investors who bought near the highs likely decided to cash out, creating selling pressure.

Other precious metals weren't as lucky on Monday. Platinum fell 1.1% to $1,591.55 per ounce, while palladium dropped 0.5% to $1,467.16. These metals often move with gold but have their own supply and demand dynamics tied to industrial uses.

For investors, the key question is whether gold can hold above $4,200 and build momentum for another run higher. The fundamentals that drove prices to records - from central bank policies to global tensions - haven't changed much. But markets rarely move in straight lines, and some consolidation around these levels wouldn't be surprising.