Key Moments
- Spot gold fell 0.8% to $4,588.55 an ounce after three straight record-setting sessions.
- Silver and platinum saw steeper losses, with silver sliding nearly 6% to $87.74/oz and platinum dropping 4% to 2,309.52/oz.
- Comments from U.S. President Donald Trump on Iran and Federal Reserve Chair Jerome Powell eased safe-haven demand for gold.
Gold Prices Pull Back After Hitting Fresh Record
Gold prices moved lower in Asian trading on Thursday, pausing after a powerful rally that had driven the metal to record territory for three consecutive sessions. The shift came as investors reassessed geopolitical and monetary policy risks that had previously fueled a surge into safe-haven assets.
By 23:04 ET (04:04 GMT), spot gold was down 0.8% at $4,588.55 an ounce. U.S. Gold Futures were also weaker, slipping 0.3% to $34,594.10.
The pullback followed a new all-time high of $4,642.72 per ounce for spot prices in the previous session, underscoring the scale of the recent rally before Thursday’s consolidation.
Broader Precious Metals Complex Sees Sharper Losses
Other major precious metals recorded more pronounced declines. Silver dropped nearly 6% to $87.74 per ounce, while platinum fell 4% to 2,309.52 per ounce, extending the corrective move beyond gold.
| Metal | Latest Price | Move | Time Reference |
|---|---|---|---|
| Spot Gold | $4,588.55/oz | -0.8% | 23:04 ET (04:04 GMT) |
| U.S. Gold Futures | $34,594.10 | -0.3% | 23:04 ET (04:04 GMT) |
| Spot Gold (previous session high) | $4,642.72/oz | Record high | Previous session |
| Silver | $87.74/oz | Nearly -6% | Thursday Asian session |
| Platinum | 2,309.52/oz | -4% | Thursday Asian session |
Geopolitical Risk Premium Eases After Trump’s Iran Comments
Gold’s recent climb to successive record highs had been driven in part by worries that mounting unrest in Iran could lead to U.S. military involvement and further destabilize the Middle East. Concerns about political pressure on the U.S. central bank had added to the risk-off mood.
These fears eased after U.S. President Donald Trump signaled a more restrained approach to Iran. The article notes that he said he had received assurances that Iranian authorities would stop killing protesters and that he believed there was no current plan for large-scale executions.
His remarks were seen as lowering the probability of an imminent U.S. military response to protests against the government of Supreme Leader Ayatollah Ali Khamenei, trimming the geopolitical risk premium that had been supporting gold’s rally.
Fed Independence Concerns Cool as Trump Addresses Powell’s Position
Gold also faced selling pressure after Trump addressed market concerns about the Federal Reserve and its leadership. In an interview with Reuters, Trump stated that he had no plan to remove Federal Reserve Chair Jerome Powell, despite an ongoing investigation.
This assurance helped calm anxiety about potential interference with the independence of U.S. monetary policy, prompting some investors to step back from safe-haven positions in gold.
The latest decline was further linked to profit-taking activity following gold’s sharp rise, which had driven prices significantly above key technical thresholds.
Underlying Bullish Drivers Remain in Place
Despite Thursday’s retracement, the broader backdrop for gold remained supportive. The metal continued to be underpinned by expectations for U.S. interest rate cuts later this year, ongoing geopolitical uncertainties, and sustained central bank purchases.
Lower interest rates typically favor gold by reducing the opportunity cost of holding a non-yielding asset, reinforcing its appeal as a store of value in the current environment.
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