According to the Wisdom Financial APP, the price of gold fell by over 1% on Wednesday, after hitting a record high, mainly due to profit-taking triggered by a strong US dollar and rising US Treasury yields. Nevertheless, ongoing conflicts in the Middle East, safe-haven demand stemming from the US presidential election, and the ongoing de-dollarization negotiations will continue to support the gold price. Mohamed El-Erian, former CEO of Pacific Investment Management Company (Pimco), warned that Western countries should take seriously the surge in gold prices, as it reflects an increasing interest in alternative solutions to the USD-based financial system.

El-Erian mentioned in the Financial Times that the changes in gold prices over the past year indicate that it has deviated from traditional factors that affect its price, such as interest rates, inflation, and the US dollar.

He emphasized that this is not only a weakening of the US dollar's dominant position, but also a change in the way the global financial system operates. While no other currency or payment system can replace the core position of the US dollar, more and more countries are showing interest in establishing alternative systems and participating in them.

In addition, analysts at SP Angel pointed out that fund managers increased their bullish positions in gold this week, reducing the short positions, while the holdings of exchange-traded funds continued to grow, remaining at around 84 million ounces. Samer Hasn from XS.com mentioned that SPDR Gold ETF (GLD.US) attracted net inflows of approximately 0.58 billion USD on Monday and Tuesday.

Comex gold futures for October delivery closed down 1.1% at $2714.40 per ounce, after reaching a high of $2772.60 per ounce. Similarly, October-delivery silver futures closed down 3.4% at $33.640 per ounce.

ETFs worth mentioning include SPDR Gold ETF, Junior Gold Miner ETF (GDXJ.US), and Gold Trust ETF (IAU.US).