Gold slips as profit-taking, softer geopolitical tone hit safe-haven demand

Gold slipped on Thursday as investors booked profits after three consecutive sessions of record highs, while an apparent softer tone from US President Donald Trump on the Federal Reserve chair and Iran dampened safe-haven demand for bullion.

Spot gold was down 0.8% at $4,584.03 per ounce, as of 0322 GMT.

In the previous session, bullion hit a record high of $4,642.72.

US gold futures for February delivery fell 1% to $4,587.70.

“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 (in the short run), but the larger story (of the metal’s rise) is not going away,” said Ilya Spivak, head of global macro at Tastylive.

With Iran’s leadership trying to quell the worst domestic unrest the country has ever faced since the 1979 revolution, Tehran threatened on US military bases in the region, seeking to deter Trump’s repeated threats of military intervention.

At the White House, however, Trump suggested he was adopting a wait-and-see posture toward the crisis.

Trump said on Wednesday that he has no plans to fire Jerome Powell despite a Justice Department criminal investigation into the Federal Reserve chair, but it was “too early” to say what he would ultimately do.

Later in the day, investor focus will be on US weekly jobless claims for the first week of January to assess labour market conditions for more clues on monetary policy.

Traders continue to anticipate two interest rate cuts this year.

A low-interest-rate environment, geopolitical and economic uncertainty traditionally favour non-yielding assets such as gold. Spot silver slid 5.6% to $87.46 per ounce after hitting an all-time high of $93.57 earlier in the session.

Spot platinum receded 4.3% to $2,282.90 per ounce, a one-week high, after scaling a record peak of $2,478.50 on December 29.

Palladium lost 3.3% to $1,766.25 per ounce and hovered near a one-week low.