Gold prices were little changed on Friday, hovering below the record levels reached earlier in the week, as upbeat U.S. labor market data reduced expectations for near-term interest rate cuts by the Federal Reserve. At the same time, easing geopolitical concerns tied to Iran diminished demand for 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 eased 0.2% to $4,611.10.
The precious metal has pulled back from Wednesday’s all-time high of $4,642.72 per ounce. Despite the mild retreat, gold remained on course to post a weekly gain of around 2%.
Strong U.S. data reshapes rate expectations
Market sentiment shifted after fresh data showed that initial jobless claims in the United States fell more than anticipated last week, highlighting the continued strength of the labor market.
The stronger-than-expected figures reinforced the view that the Federal Reserve could keep borrowing costs elevated for longer, prompting investors to push back expectations for interest rate cuts later this year.
Higher interest rates generally weigh on assets like gold that do not offer yield, as they increase the opportunity cost of holding bullion.
Following the data release, the U.S. Dollar Index climbed to its highest level in six weeks against a basket of major currencies, adding further pressure to gold by making it more expensive for overseas buyers.
Reduced Iran risks limit safe-haven demand
Gold had rallied earlier in the week as investors sought shelter amid heightened geopolitical uncertainty linked to unrest in Iran.
Widespread protests and government crackdowns had raised fears of escalation and potential supply disruptions, supporting demand for precious metals.
However, those concerns eased after U.S. President Donald Trump softened his previously hawkish stance on possible military intervention, signaling a more cautious approach and citing reports that violent crackdowns on demonstrators may be subsiding.
Broader metals weaken
Other precious and industrial metals traded lower on Friday, weighed down by the stronger U.S. dollar.
Silver fell 1.7% to $90.87 per ounce, while platinum futures dropped 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, while U.S. copper futures slid 1.8% to $5.88 a pound.
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