Key Moments
- Spot gold dipped 0.1% to $4,608.55 an ounce, staying below Wednesday’s record high of $4,642.72/oz.
- Stronger-than-expected U.S. initial jobless claims reinforced expectations that Federal Reserve rates may remain elevated for longer.
- Easing geopolitical tensions around Iran and a stronger U.S. dollar pressured safe-haven demand across precious and industrial metals.
Gold Trades Just Under Record Levels
Gold prices were little changed on Friday, consolidating just under their recent peak as investors digested robust U.S. labor market data and easing geopolitical risks tied to Iran.
Spot gold was last down 0.1% at $4,608.55 an ounce by 02:11 ET (07:11 GMT), while U.S. Gold Futures slipped 0.2% to $4,611.10. The metal has eased back from a record intraday high of $4,642.72 per ounce set on Wednesday. Even with the pullback, bullion remained on course for a weekly advance of about 2%.
Rate-Cut Expectations Repriced After Labor Data
Market positioning shifted after data showed that U.S. initial jobless claims declined more than anticipated last week, highlighting the continued strength of the labor market.
The stronger reading supported the view that the Federal Reserve could maintain higher interest rates for an extended period, prompting investors to push out expectations for rate reductions this year. Elevated policy rates typically diminish the relative appeal of non-yielding assets such as gold.
In the wake of the data, the U.S. Dollar Index advanced to a six-week high against a basket of major currencies. The dollar’s rise added further pressure on gold by increasing its cost for buyers using other currencies.
Cooling Iran Risk Premium Softens Safe-Haven Flows
Gold had rallied earlier in the week as investors sought protection amid heightened geopolitical uncertainty related to unrest in Iran.
Unrest in Iran was driven by widespread protests and government crackdowns, which had stoked concerns about potential escalation and supply disruptions, bolstering demand for precious metals.
U.S. President Donald Trump tempered his previously hawkish tone on possible military action, signaling a more cautious approach and acknowledging reports that violent crackdowns on demonstrators may be easing. The reduction in perceived geopolitical risk helped to cool safe-haven demand for gold.
Broader Metals Complex Under Pressure
The stronger U.S. dollar weighed on the wider metals complex on Friday, pulling both precious and industrial metals lower.
| Metal | Contract / Market | Move | Latest Price |
|---|---|---|---|
| Gold | Spot | -0.1% | $4,608.55/oz |
| Gold | U.S. Futures | -0.2% | $4,611.10/oz |
| Silver | Spot | -1.7% | $90.87/oz |
| Platinum | Futures | -2.1% | $2,361.31/oz |
| Copper | London Metal Exchange Benchmark Futures | -1.7% | $12,907.20/ton |
| Copper | U.S. Futures | -1.8% | $5.88/lb |
Silver dropped 1.7% to $90.87 per ounce, while platinum futures fell 2.1% to $2,361.31 per ounce. In base metals, benchmark Copper Futures on the London Metal Exchange declined 1.7% to $12,907.20 a ton, and U.S. Copper Futures were down 1.8% at $5.88 a pound.
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