Gold Corrects After Record, Trump Appeases Iran
Gold prices weakened slightly on Thursday (January 15th), as the US dollar strengthened after weekly jobless claims data showed the labor market remained quite resilient. At the same time, US President Donald Trump's more moderate tone toward Iran also reduced the safe-haven momentum that had previously lifted the precious metal to a record high.
At 1:30 p.m. New York time, spot gold fell 0.1% to US$4,614.93/oz, after hitting a record US$4,642.72/oz the previous day. Meanwhile, US gold futures for February delivery closed down 0.3% at US$4,623.70/oz.
Data-wise, new applications for US unemployment benefits fell unexpectedly last week. This figure lifted the dollar index to its highest level since early December and made gold more expensive for buyers outside the US—a factor that has held back further rally.
This also keeps market expectations for the Fed on hold for the first half of the year. The market widely expects the central bank to hold interest rates at its January 27-28 meeting, despite Trump's continued push for a cut. However, market participants still expect at least two more 25 basis point cuts in the second half of the year.
Gold sentiment was further pressured after Trump said he had no plans to fire Fed Chairman Jerome Powell despite a criminal investigation into the renovation project, although he called it "too early" to confirm his final course of action. On the geopolitical front, Trump also stated that reports had emerged that violence in the crackdown on protests in Iran was beginning to subside and that there were no plans for mass executions in the near future—signaling a "wait-and-see" approach after previously threatening intervention.
Despite the correction, market participants believe gold's decline is still limited and more akin to a normalization phase following a sharp rally. Amid geopolitical uncertainty and the prospect of eventual interest rate cuts, some traders view any price decline as an accumulation opportunity.
Beyond that, central bank demand remains a supportive theme. The Polish central bank stated that its gold reserves reached 550 tons by the end of 2025 and is targeting an increase to 700 tons.
Among other precious metals, spot silver fell 0.3% to US$92.50/oz after hitting an intraday record of US$93.57. Platinum fell 0.8% to US$2,404.18/oz, while palladium remained relatively stable at US$1,826.32/oz.
Source: Newsmaker.id
