Gold prices fell in Asian trading on Thursday after three consecutive record-high sessions as U.S. President Donald Trump tempered stance on Iran unrest and Federal Reserve Chair Jerome Powell, reducing bullion’s safe-haven demand.
Spot gold was last down 0.4% at $4,609.89 an ounce by 02:04 ET (07:04 GMT). U.S. Gold Futures also slipped 0.4% to $4,615.10.oz.
Gold had hit a record high of $4,642.72/oz in the previous session.
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Gold eases from peaks on Trump’s softer Iran stance The precious metal had surged to successive all-time highs amid fears that escalating unrest in Iran could trigger U.S. military action and disrupt stability in the Middle East, alongside concerns over political pressure on the U.S. central bank.
Those worries eased after Trump signalled a softer stance on Iran. The U.S. president said he had been assured that Iranian authorities would stop killing protesters and that he believed there was currently no plan for large-scale executions.
His comments reduced the likelihood of an immediate U.S. military response to demonstrations against the government of Supreme Leader Ayatollah Ali Khamenei, reducing the geopolitical risk premium that had supported gold’s rally.
Trump says no plan to fire Fed Chair Powell Gold also came under pressure after Trump sought to calm concerns over the Federal Reserve.
In an interview with Reuters, Trump said he had no plan to fire Federal Reserve Chair Jerome Powell, despite an ongoing investigation, easing investor anxiety over the independence of U.S. monetary policy.
The pullback was also attributed to profit-taking, after gold’s sharp ascent pushed prices well above key technical levels.
Despite Thursday’s decline, gold remained underpinned by expectations of U.S. interest rate cuts later this year, persistent geopolitical uncertainties, and strong central bank buying.
Lower interest rates typically support gold by reducing the opportunity cost of holding the non-yielding metal.
Metal markets drop Other precious metals saw much sharper declines, with silver plunging more than 3% to $89.76/oz, while platinum prices dropped 2.5% to 2,323.52/oz.
Benchmark Copper Futures on the London Metal Exchange slipped 1.1% to $13,087.20 a ton, while U.S. Copper Futures declined 1.6% to $5.99 a pound.
