Gold prices slipped during Asian trading on Thursday after posting three straight record highs, as easing geopolitical and monetary policy concerns reduced demand for the safe-haven metal. Softer rhetoric from U.S. President Donald Trump on Iran and the Federal Reserve weighed on bullion prices.
Spot gold fell 0.4% to $4,609.89 per ounce by 02:04 ET (07:04 GMT), while U.S. gold futures also declined 0.4% to $4,615.10 an ounce. In the previous session, gold had surged to a fresh all-time high of $4,642.72.
Gold retreats as Iran tensions ease
Gold’s recent rally was driven by fears that escalating unrest in Iran could spark U.S. military intervention and destabilise the Middle East, alongside concerns about political pressure on the U.S. central bank. Those worries began to fade after Trump signalled a more restrained approach toward Iran.
The U.S. president said he had received assurances that Iranian authorities would halt the killing of protesters and that there were no current plans for mass executions. His remarks reduced expectations of an immediate U.S. response to protests against the government of Supreme Leader Ayatollah Ali Khamenei, easing the geopolitical risk premium that had supported gold prices.
Trump reassures markets on the Fed
Gold also faced pressure after Trump sought to calm markets over the future of the Federal Reserve. Speaking to Reuters, he said he has no intention of firing Federal Reserve Chair Jerome Powell, despite an ongoing investigation.
The comments helped ease investor concerns about the independence of U.S. monetary policy. Some of the pullback in gold was also attributed to profit-taking, following a sharp rally that had pushed prices well above key technical levels.
Despite Thursday’s decline, gold remains supported by expectations of U.S. interest rate cuts later this year, continued geopolitical uncertainty, and strong central bank demand. Lower interest rates typically benefit gold by reducing the opportunity cost of holding a non-yielding asset.
Other metals slide
Elsewhere in metals markets, losses were more pronounced. Silver plunged more than 3% to $89.76 an ounce, while platinum fell 2.5% to $2,323.52 an ounce. Benchmark copper futures on the London Metal Exchange dropped 1.1% to $13,087.20 a ton, and U.S. copper futures declined 1.6% to $5.99 a pound.
