Gold prices slipped to around $4,100 per ounce on Wednesday, extending their pullback from record highs after a sharp 5% plunge in the previous session—the steepest drop since 2021.

The decline came as traders booked profits following the metal’s record-breaking rally, while improving risk sentiment—driven by optimism over easing U.S.–China trade tensions—reduced demand for safe-haven assets.

In India, physical gold buying also cooled as the seasonal festive demand waned, further weighing on the market.

Despite the recent correction, gold remains up nearly 60% year-to-date, underpinned by expectations of additional Federal Reserve rate cuts in the final two meetings of the year and ongoing global economic uncertainty.

All eyes now turn to Friday’s U.S. CPI report, which could offer fresh clues on the Fed’s policy path and the metal’s next move.