Bullion declined as much as 1% on Thursday after closing 1.4% higher in the previous session. Technical indicators show gold’s been trading in overbought territory for the past month, likely leading to some profit-taking by investors.

Some of gold’s haven appeal waned as US President Donald Trump said a peace deal in the Middle East was “very close,” after officials from Israel and Hamas were cautiously positive about the prospect that talks underway in Egypt would bring an end to the two-year war in Gaza.

Gold remains more than 50% higher this year, boosted by a plethora of uncertainties over global trade, the Federal Reserve’s independence and US fiscal stability. Heightened geopolitical tensions have also boosted demand for haven assets this year, while central banks have continued to buy bullion at a rapid pace.

Spot gold dipped 0.3% to US$4,031.21 an ounce as of 9.48am in Singapore, after reaching US$4,059.31 on Wednesday. The Bloomberg Dollar Spot Index dipped 0.1%.

Platinum edged lower on Thursday, while palladium was steady, following strong gains in the previous session. Persistent market tightness and inflows into exchange-traded funds backed by the metals have provided support for prices.

Silver dipped, but remained close to a record high in Bloomberg intraday data going back to 1993.