Gold prices fell nearly 1% on Wednesday, retreating from a record high, as Federal Reserve Chair Jerome Powell’s remarks were analyzed. Spot gold was down 0.9% at $3,658.25 per ounce, after hitting a record $3,707.40. U.S. gold futures for December settled 0.2% lower at $3,717.8. The Fed’s first rate cut of the year comes after three cuts in 2024.

Lower interest rates often boost gold’s appeal, as lower yields reduce holding costs. Gold’s record run this year is supported by central bank purchases, diversification from the U.S. dollar, safe-haven demand, and a weak dollar. Bullion, a hedge against uncertainties, has surged 39% in 2020. Deutsche Bank raised its gold price forecast for 2021 to $4,000 per ounce.

Analysts say gold’s rise is due to central bank purchases, dollar diversification, and safe-haven demand. Spot silver dropped 2.4% to $41.51 per ounce, platinum fell 2.2% to $1,360, and palladium slipped 2.6% to $1,145.44. Gold’s uptrend remains intact unless it drops below $3,550. Powell called the rate cut a “risk-management” move, causing profit-taking.

Read more at Yahoo Finance: Gold falls after scaling record peak as markets digest Fed Chair Powell’s comments