Gold Retreats as Profit-Taking and Softer Geopolitics Cool Safe-Haven Demand
Gold prices fell on Thursday as investors locked in profits after three straight sessions of record highs, while a calmer geopolitical tone reduced demand for safe-haven assets. Spot gold declined 0.8% to $4,584.03 per ounce, retreating from a record peak of $4,642.72 hit in the previous session. U.S. gold futures for February delivery also slipped 1% to $4,587.70.
Market sentiment shifted after U.S. President Donald Trump signaled a more cautious approach toward tensions with Iran and indicated he had no immediate plans to remove Federal Reserve Chair Jerome Powell, despite an ongoing Justice Department investigation. Trump’s wait-and-see stance on Iran’s domestic unrest and regional threats eased fears of imminent conflict, dampening short-term support for bullion, analysts said.
Other precious metals also saw sharp declines after recent rallies. Silver slid 5.6% to $87.46 per ounce after touching a record high earlier in the session, while platinum fell 4.3% and palladium dropped 3.3%. Investors are now awaiting U.S. weekly jobless claims data for further clues on the labor market and monetary policy, with expectations of interest rate cuts later this year still underpinning the longer-term outlook for gold.
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