Gold prices eased on Thursday as investors booked profits following record highs in the previous session, while signals of a softer geopolitical stance from U.S. President Donald Trump on Iran and Federal Reserve policy tempered demand for safe-haven assets.

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Gold Prices Today

Spot gold declined 0.3% to $4,608.77 per ounce as of 0652 GMT, after reaching a record $4,642.72 on Wednesday. U.S. gold futures for February delivery fell 0.5% to $4,613 per ounce, reflecting a combination of profit-taking and reduced geopolitical risk premiums.

Ilya Spivak, head of global macro at Tastylive, noted:

“Gold is down a bit after Trump indicated he may not intervene in Iran, staving off safe-haven demand. But the larger story of the metal’s rise is not going away.”

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Impact of U.S.-Iran Geopolitical Developments

Iran is experiencing its most significant domestic unrest since the 1979 revolution, prompting Tehran to threaten U.S. military bases in the region in an attempt to deter potential military action. However, President Trump indicated a wait-and-see posture, signaling no immediate intervention plans. This softer tone contributed to the decline in gold prices as investors temporarily reduced exposure to geopolitical risk assets.

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Federal Reserve and U.S. Economic Indicators

The Federal Reserve and its future interest rate policies continue to play a pivotal role in gold price movements. President Trump stated that he had no plans to dismiss Fed Chair Jerome Powell, despite ongoing criminal investigations, but added that it was “too early” to make a final decision.

Investors are also closely monitoring U.S. weekly jobless claims for the first week of January, which may provide clues about the Fed’s monetary policy path. Market expectations currently suggest two interest rate cuts could occur this year, a scenario typically supportive of non-yielding assets like gold.

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Silver, Platinum, and Palladium Performance

Other precious metals also saw declines on Thursday:

• Spot silver dropped 3.4% to $89.63 per ounce after briefly hitting an all-time high of $93.57 earlier in the session.
• Spot platinum fell 2.6% to $2,321.65 per ounce, down from a record $2,478.50 on December 29.
• Palladium decreased 1.3% to $1,804.10 per ounce, hovering near a one-week low.

The pullback in these metals mirrored profit-taking behavior and reduced demand for safe-haven investments amid a calmer geopolitical environment.

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Stock Market Reaction

Equities also reflected cautious investor sentiment. On Wednesday:

• The Dow Jones Industrial Average fell fractionally
• The S&P 500 slipped 0.5%
• The Nasdaq declined 1%

These movements highlight the interconnectedness of precious metals and equity markets, where risk sentiment and economic data significantly influence investor behavior.

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Conclusion

Gold’s brief retreat underscores the delicate balance between profit-taking, geopolitical risk, and U.S. monetary policy expectations. While recent highs demonstrate strong interest in safe-haven assets, softer signals from the U.S. administration and Federal Reserve have temporarily eased demand.

Investors should continue to monitor geopolitical developments in Iran, Fed policy moves, and broader economic indicators, as these factors are likely to shape the trajectory of gold prices and other precious metals in the coming months.