Gold prices were broadly steady on Friday, hovering below the record highs reached earlier in the week, as robust U.S. labor market data reduced expectations of near-term interest rate cuts by the Federal Reserve. At the same time, easing geopolitical tensions linked to Iran weighed on demand for traditional safe-haven assets.
Spot gold slipped 0.1% to $4,608.55 an ounce by 02:11 ET (07:11 GMT), while U.S. gold futures edged down 0.2% to $4,611.10. The precious metal pulled back from its all-time peak of $4,642.72 an ounce set on Wednesday, but remained on course for a weekly gain of roughly 2%.
Traders reassess Fed outlook after strong U.S. data
Market sentiment shifted after fresh data showed U.S. initial jobless claims fell by more than expected last week, highlighting continued strength in the labor market. The figures reinforced the view that the Federal Reserve may keep interest rates elevated for longer, pushing back expectations for rate cuts this year.
Higher interest rates typically weigh on non-yielding assets such as gold. Adding pressure, the U.S. dollar index climbed to a six-week high against a basket of major currencies, making gold more expensive for buyers using other currencies.
Cooling Iran tensions dampen safe-haven demand
Gold had rallied earlier in the week as investors sought safety amid rising geopolitical tensions tied to unrest in Iran. Widespread protests and government crackdowns had raised fears of escalation and potential disruptions, boosting demand for precious metals.
However, U.S. President Donald Trump struck a more cautious tone on possible military intervention, citing indications that violent crackdowns on demonstrators were easing. His remarks helped reduce geopolitical risk premiums, limiting further gains in gold.
Metal markets retreat
Other metals also traded lower on Friday, pressured by the stronger dollar. Silver slid 1.7% to $90.87 an ounce, while platinum futures fell 2.1% to $2,361.31.
Copper prices weakened as well, with benchmark copper futures on the London Metal Exchange dropping 1.7% to $12,907.20 a ton. U.S. copper futures declined 1.8% to $5.88 a pound.
