Gold prices edged lower on Thursday after hitting a record high in the previous session, as geopolitical and trade risks eased following signals from US President Donald Trump that Washington may pause military action against Iran and hold off on tariffs on critical minerals.
Spot gold slipped 0.4% to $4,602.99 an ounce by 0931 GMT, after reaching a record $4,642.72 on Wednesday. US gold futures for February delivery fell 0.6% to $4,607.60.
Gold and silver prices retreated after Trump indicated he may delay any military action against Iran and after the US refrained from imposing tariffs on imports of rare earths, lithium and other critical minerals, easing concerns that had driven strong metal inflows into the United States in recent months, analysts said.
Trump said on Wednesday he had opted, for now, against levying tariffs on critical minerals and instead instructed his administration to seek supplies from international trading partners. He also said he had been told that killings linked to Iran’s crackdown on protests were easing, signalling a wait-and-see approach after earlier threats of intervention.
Safe-haven demand for gold typically strengthens during periods of geopolitical and economic uncertainty and in low-interest-rate environments. Markets expect the US Federal Reserve to leave interest rates unchanged at its Jan. 27–28 meeting, while pricing in at least two 25-basis-point rate cuts later this year.
Spot silver fell 3% to $89.97 an ounce after touching an all-time high of $93.57 earlier in the session. Platinum slipped 1.8% to $2,340.54 an ounce after reaching a record peak late last year, while palladium lost 1.2% to $1,804.29. — Reuters
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