Gold prices were mostly unchanged on Friday, remaining below the record highs reached earlier in the week, as strong U.S. employment data cooled expectations for near-term Federal Reserve interest rate cuts. At the same time, easing geopolitical tensions surrounding Iran reduced demand for traditional safe-haven assets.
Spot gold was last down 0.1% at $4,608.55 an ounce by 02:11 ET (07:11 GMT), while U.S. Gold Futures slipped 0.2% to $4,611.10.
Bullion has pulled back from its all-time high of $4,642.72/oz touched on Wednesday. Even so, gold was still positioned for a weekly gain of roughly 2%, despite the recent consolidation.
Markets reassess Fed outlook after strong U.S. data
Investor sentiment shifted following the release of data showing that U.S. initial jobless claims fell more than expected last week, highlighting the ongoing strength of the labor market.
The stronger-than-forecast figures reinforced the view that the Federal Reserve could keep interest rates elevated for longer, prompting markets to push back expectations for when rate cuts might begin later this year.
Elevated interest rates typically weigh on non-yielding assets such as gold, as they increase the opportunity cost of holding bullion.
After the data, the U.S. Dollar Index climbed to a six-week high against a basket of major currencies, adding further pressure to gold by making it more expensive for buyers using other currencies.
Cooling Iran tensions reduce safe-haven appeal
Gold had rallied earlier in the week as investors sought protection amid heightened geopolitical risks tied to unrest in Iran.
The situation was driven by widespread protests and government crackdowns, raising concerns about escalation and potential supply disruptions, which in turn boosted demand for precious metals.
However, U.S. President Donald Trump softened his previously hawkish tone on possible military action, signaling a more cautious approach and citing reports that violent crackdowns on demonstrators may be easing.
Broader metal markets weaken
Other precious and industrial metals moved lower on Friday, pressured by the stronger U.S. dollar.
Silver slid 1.7% to $90.87 per ounce, while platinum futures fell 2.1% to $2,361.31/oz.
In base metals, benchmark copper futures on the London Metal Exchange declined 1.7% to $12,907.20 a ton, and U.S. copper futures dropped 1.8% to $5.88 a pound.