Gold prices ease as strong US economic data and easing geopolitical tensions reduce safe-haven demand.
Mumbai – Gold prices edged lower on Friday as stronger-than-expected economic data from the United States and easing geopolitical tensions dampened investor appetite for safe-haven assets.
The decline marked a pause after a strong rally earlier in the week that had pushed prices to record highs.
Spot gold slipped 0.1 percent to trade near 4,610 dollars per ounce, extending losses from the previous session. Despite the dip, gold remained on track for a weekly gain of around two percent after hitting an all-time high earlier in the week.
The recent pullback in gold prices has been largely attributed to positive economic indicators from the United States. Data showing a sharp drop in weekly jobless claims reinforced confidence in the resilience of the US economy.
Initial jobless claims fell to their lowest level in weeks, coming in well below market expectations. This strengthened the US dollar, which tends to weigh on gold prices by making the metal more expensive for overseas buyers.
The dollar index hovered near a six-week high, reflecting renewed optimism about US economic growth. A firmer dollar typically reduces demand for dollar-priced commodities such as gold.
Market analysts noted that gold’s earlier momentum has slowed as macroeconomic headwinds emerged. They pointed out that recent US data has acted more as a drag than a support for bullion prices.
Geopolitical developments also played a role in easing gold’s safe-haven appeal. Reports indicated that protests in Iran have subsided since earlier in the week, reducing immediate geopolitical risk.
Gold usually benefits during periods of heightened uncertainty and global unrest. With tensions appearing to cool, investors showed less urgency to seek protection in precious metals.
In Asia, physical gold demand remained mixed as record-high prices discouraged retail buyers. In India, one of the world’s largest gold consumers, demand stayed subdued as high prices limited jewellery purchases.
Indian buyers have become increasingly price-sensitive amid persistent inflation and elevated bullion costs. Traders reported limited interest despite the ongoing wedding season, which typically boosts demand.
In contrast, gold traded at a premium in China where demand remained steady ahead of the Lunar New Year. Seasonal buying and gifting demand supported prices in the Chinese market.
Other precious metals also experienced volatility during the session. Spot silver fell sharply, retreating from record levels reached earlier in the week.
Silver prices dropped more than one percent but were still set for a strong weekly gain. Analysts said speculative interest had pushed silver close to key psychological levels before profit-taking set in.
Platinum prices declined during the session but remained positive on a weekly basis. The metal continued to benefit from expectations of tighter supply and steady industrial demand.
Palladium also slipped, extending losses after touching a recent low. The metal was on course for a weekly decline as concerns over auto-sector demand persisted.
Overall, the precious metals market reflected a shift in investor sentiment driven by macroeconomic stability. Strong US data and calmer geopolitical conditions reduced the immediate need for defensive assets.
Investors are now closely watching upcoming economic indicators and central bank signals. Future price movements are likely to depend on inflation trends, interest rate expectations, and global political developments.
