Gold prices retreated on Friday, sliding below the key $4,000-per-ounce level, as investors booked profits following the announcement of a ceasefire between Israel and Hamas.

The metal faced sharp overnight losses and remained under pressure during Asian trading hours. A firmer U.S. dollar added to the downward momentum, supported by growing uncertainty over the Federal Reserve’s policy outlook and weakness in the Japanese yen and euro.

By 01:13 ET (05:13 GMT), spot gold was down 0.2% at $3,970.88 an ounce, while December futures were up 0.3% at $3,985.20/oz. Earlier this week, spot prices broke above $4,000/oz for the first time ever, reaching a record high of $4,059.32/oz.

Gold’s rally lost steam shortly after the signing of a U.S.-brokered ceasefire deal between Israel and Hamas. The agreement represents the first step in a 20-point peace plan put forward by U.S. President Donald Trump, widely seen as one of the most ambitious attempts at peace in the region.

But easing geopolitical tensions are expected to reduce demand for safe-haven assets. Other precious metals mirrored gold’s pullback, after rallying earlier in the week. Spot platinum fell from near 13-year highs to $1,603.92/oz, while spot silver hovered at $49.6655/oz after briefly topping $51/oz on Thursday to hit a new record.

Even with the latest decline, gold remains 2.3% higher for the week, extending its winning streak to eight weeks. Silver is up 3.5% over the same period, while platinum is unchanged.

ANZ analysts said the pullback in gold and other precious metals was largely driven by profit-taking following a “meteoric rise” in recent weeks. However, they believe any correction is likely to be “short-lived and shallower,” as multiple drivers remain in place to support higher prices.

“We see structural drivers for gold still in place to support higher prices. The Federal Reserve is expected to remain on its easing path amid increasing downside risks to employment,” ANZ analysts wrote.

They also pointed out that persistent political uncertainty in the U.S., including a potential prolonged government shutdown, is expected to keep investors cautious and bolster gold’s appeal as a safe-haven asset.

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