Gold Breaks $5,000 for First Time, but Rate Expectations Pull It Back

Gold futures settled at $5,035.50 per troy ounce—a historic first—before reversing 0.5% as investors recalibrated on Federal Reserve rate expectations. The Fed is widely expected to hold rates at 3.50–3.75%, elevating the opportunity cost of holding non-yielding gold. Spot prices recovered to $5,019.10, suggesting physical demand provided support. The pullback reveals the tension between gold's structural bull case and near-term rate headwinds.