Gold prices edged lower in Asian trading on Wednesday, retreating from sharp gains earlier in the week as investors moved to lock in profits. The pullback came as the U.S. dollar strengthened modestly and markets continued to weigh elevated geopolitical risks alongside anticipation of key U.S. economic releases.
Spot gold was down around 1% at $4,450.55 an ounce by 02:13 ET (07:13 GMT), while U.S. gold futures for March delivery slipped 0.8% to $4,460.55 an ounce. The decline followed a strong two-session rally, during which bullion was buoyed by safe-haven demand triggered by a sudden escalation in tensions between the United States and Venezuela.
Focus shifts from geopolitics to U.S. data
Momentum faded midweek as traders took profits and refocused on macroeconomic signals. A mild rebound in the U.S. dollar also weighed on prices by making gold more expensive for buyers using other currencies.
Geopolitical uncertainty remains high after U.S. forces carried out an operation in Venezuela that resulted in the capture of President Nicolás Maduro, an event that unsettled global markets and initially drove investors toward traditional safe havens such as gold.
U.S. President Donald Trump has since said Washington is planning to sell Venezuelan oil and is in discussions with Caracas over future energy arrangements. While the potential reintroduction of Venezuelan crude to global markets via U.S.-controlled channels has eased some supply concerns in the oil market, it has done little to reduce broader geopolitical anxiety.
Investor attention is now turning toward upcoming U.S. economic data, particularly Friday’s closely watched non-farm payrolls report. The figures are expected to play a key role in shaping expectations for monetary policy at the Federal Reserve. Markets are currently pricing in two additional interest rate cuts this year, a backdrop that has generally been supportive for gold by lowering the opportunity cost of holding non-yielding assets.
Broader metals complex retreats
Other metals also pulled back after recent rallies. Silver fell 2.1% to $79.26 an ounce, while platinum dropped sharply, sliding 6% to $2,302.60 an ounce, as investors reassessed risk exposure following the surge in prices.
In base metals, benchmark copper futures on the London Metal Exchange eased 0.5% to $13,133.20 a tonne, while U.S. copper futures declined 1.2% to $6.02 a pound. Both contracts had touched record highs earlier in the week before reversing lower.
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