Gold Falls More Than 1% as Geopolitical Tensions Ease in Iran
Gold prices fell more than 1% on Friday, January 16, amid profit-taking after the precious metal recently reached record highs, while signs of easing geopolitical tensions further diminished its appeal as a safe haven.
Spot gold prices fell 1% to $4,567.89 an ounce, but were still on track for their second consecutive weekly gain after hitting an all-time high of $4,642.72 on Wednesday.
U.S. gold futures for February delivery fell 1.1% to $4,570.90.
U.S. gold futures for February delivery fell 0.5% to $4,601.80.
Kyle Rodda, an analyst at Capital.com, said: “The move to lower gold prices began when the likelihood of US intervention in the social unrest in Iran diminished, and we received data from the US, all of which suggests there is no urgent need to cut interest rates.”
The dollar is on track for its third consecutive weekly gain after US Labor Department data showed weekly jobless claims fell by 9,000 to a seasonally adjusted 198,000, below the 215,000 forecast in a Reuters poll.
A stronger dollar makes dollar-denominated commodities more expensive for holders of other currencies.
People inside Iran contacted by Reuters on Wednesday and Thursday said the protests appeared to have subsided since Monday, as US President Donald Trump adopted a less confrontational tone regarding military intervention against Tehran.
As for other precious metals, silver fell 1.8% in spot trading to $90.70 an ounce, but is on track for weekly gains of more than 13% after hitting a record high of $93.57 in the previous session.
Platinum dropped 2.8% to $2,342.14 an ounce, and palladium lost 2.3% to $1,759.07 an ounce after hitting a one-week low earlier in the session.
