Gold Prices Pull Back From Record Highs

Gold prices held steady on Friday but remained below the record highs reached earlier in the week. The metal's upward momentum has been checked by two key factors: strong U.S. economic data cooling expectations for Federal Reserve rate cuts and easing geopolitical tensions surrounding Iran, which has reduced demand for safe-haven assets.

By 02:11 ET, spot gold was trading down 0.1% at $4,608.55 per ounce. U.S. gold futures saw a similar dip, falling 0.2% to $4,611.10.

The yellow metal has retreated from a record peak of $4,642.72 per ounce set on Wednesday. Despite this pullback, gold is still on track to close the week with a gain of approximately 2%.

Strong US Jobs Data Delays Fed Rate Cut Hopes

Investor sentiment shifted after fresh data revealed that U.S. initial jobless claims fell more than expected last week. This report highlights the ongoing strength of the American labor market and reinforces the view that the Federal Reserve may keep interest rates higher for longer.

As a result, market expectations for the timing of this year's rate cuts are being pushed back. Higher interest rates typically reduce the appeal of non-yielding assets like gold.

The robust economic data also boosted the U.S. Dollar Index, which climbed to a six-week high against other major currencies. A stronger dollar further weighs on gold by making it more expensive for buyers holding other currencies.

Easing Iran Tensions Reduce Safe-Haven Appeal

Gold’s surge earlier in the week was partly driven by investors seeking safety amid heightened geopolitical risks linked to unrest in Iran. Widespread protests and government crackdowns had stoked fears of escalation, lifting demand for precious metals.

However, that demand has cooled. U.S. President Donald Trump softened his previously hawkish stance on potential military intervention, signaling a more cautious approach. Reports that violent crackdowns on demonstrators may be easing also helped lower the political temperature, diminishing gold's appeal as a haven asset.

Broader Metals Market Slides on Stronger Dollar

Other precious and industrial metals also traded lower on Friday, pressured by the stronger U.S. dollar.

• Silver prices dropped 1.7% to $90.87 per ounce.

• Platinum futures declined 2.1% to $2,361.31 per ounce.

• Copper futures on the London Metal Exchange slipped 1.7% to $12,907.20 a ton.

• U.S. Copper futures fell 1.8% to $5.88 a pound.