Gold fell on Thursday as investors sold to take profits following a day in which the metal broke through the $4,000 per ounce barrier and reached a new record high amid economic and geopolitical uncertainty and expectations of U.S. interest rate cuts.

Spot gold dropped 0.4% to $4,021.99 per ounce by 0117 GMT after hitting a record high of $4,059.05 on Wednesday.

U.S. gold futures for December delivery fell 0.7% to $4,042.60.

According to the FedWatch tool by CME, markets expect an additional 25 basis point rate cut in both October and December with probabilities of 95% and 83%, respectively.

Gold, which yields no income, typically thrives in low interest rate environments and times of economic uncertainty.

This week, markets experienced political turmoil in Japan and France alongside the ongoing U.S. government shutdown, increasing investor demand for safe-haven assets like gold.

Gold has surged 54% year-to-date, supported by central bank purchases, growing demand for gold-backed ETFs, a weaker dollar, and increased retail investor interest seeking hedges amid rising trade and geopolitical tensions.

Other precious metals saw silver rise 0.1% to $48.91 per ounce in spot trading after hitting an all-time high of $49.57 on Wednesday. Platinum fell 0.7% to $1,650.60, while palladium dropped 1% to $1,435.25.