By Sybilla Gross, Preeti Soni and Jack Ryan

(Bloomberg) -- Gold held near a record high, as traders weighed whether the precious metal’s torrid rally had left it vulnerable to pullbacks.

Bullion steadied near $4,040 an ounce, about $20 short of Wednesday’s all-time peak. It fell as much as 1% earlier in the session, as technical indicators show gold’s been trading in overbought territory for the past month, likely leading to some profit-taking by investors.

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In a potential hit to gold’s haven demand, US President Donald Trump announced Israel and Hamas have agreed to terms for the release of all hostages held by the Palestinian militant group in Gaza. That was seen as a major breakthrough in the US- and Qatari-brokered negotiations to end their two-year war.

“This last $400 gold rally has been unprecedented in pace – it’s frenzied, which usually implies it burns itself out,” said Nicky Shiels, head of metals strategy at MKS Pamp SA.

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 edged 0.1% lower to $4,037.18 an ounce as of 10:51 a.m. in London, after reaching $4,059.31 on Wednesday. The Bloomberg Dollar Spot Index was steady. Palladium rose 2.5% after gaining more than 7% in Wednesday’s session. Silver — which remains close to a record in Bloomberg intraday data going back to 1993 — climbed 1.5%, while platinum gained 1%.

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