BY COMFORT OGBONNA
Gold prices slipped on Thursday as investors cashed in profits following a blockbuster rally that pushed the precious metal to a fresh record high only a day earlier. The retreat was compounded by easing geopolitical anxiety and softer comments from U.S. President Donald Trump that dampened demand for traditional safe-haven assets.
Spot gold was last down 0.3% at $4,608.77 per ounce after soaring to an unprecedented $4,642.72 on Wednesday, a milestone driven by heightened global tensions and expectations of lower interest rates. U.S. gold futures for February delivery followed suit, falling 0.5% to $4,613.00.
Analysts said the modest pullback was unsurprising given the scale of gold’s recent climb. Ilya Spivak, head of global macro at Tastylive, noted that Trump’s latest remarks suggesting the United States may refrain from immediate intervention in Iran—helped cool risk aversion. “Today, we’re seeing that gold is down a bit after Trump said maybe we’re not going to intervene in Iran, staving off safe-haven demand, but the larger story of the metal’s rise is not going away,” he said.
The geopolitical backdrop remains highly charged. Iran’s leadership is attempting to suppress mass protests that have erupted into the most intense domestic unrest since the 1979 revolution. Tehran issued warnings aimed at deterring Washington from escalating involvement, threatening U.S. military bases across the region if Trump carries out repeated threats of intervention. Yet the president appeared to strike a more cautious stance on Wednesday, saying he was watching events closely rather than committing to military action.
Political uncertainty in Washington also played its part. Trump signalled he has no immediate intention to fire Federal Reserve Chair Jerome Powell despite a Justice Department criminal probe, though he added it was still “too early” to determine what his final decision might be. Any disruption at the central bank would carry major implications for monetary policy and market stability.
Investors are now shifting their attention to U.S. weekly jobless claims data due later Thursday. The report could help shape expectations for the Fed’s next moves, with traders currently pricing in two interest rate cuts this year. Gold traditionally thrives in lower-rate environments because the metal earns no yield and becomes more attractive when bond returns fall.
The broader precious metals complex mirrored gold’s retreat. Spot silver plunged 3.4% to $89.63 per ounce after smashing a record high of $93.57 earlier in the session. Platinum slipped 2.6% to $2,321.65 after reaching a lifetime peak of $2,478.50 in late December. Palladium edged 1.3% lower to $1,804.10 and hovered near a one-week low.
Despite Thursday’s declines, analysts noted that underlying momentum in the metals market remains strong thanks to the powerful combination of geopolitical risk, fragile economic confidence, and expectations of easier global monetary policy factors that continue to send investors searching for long-term hedges against uncertainty.
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