Gold prices experienced a decline, retreating from recent highs as investors secured profits and safe-haven demand decreased due to less pressing geopolitical concerns. The strength of the US Dollar further contributed to the downward pressure.
- Gold prices fell to around $4,590 per ounce.
- President Trump suggested Iran’s crackdown on protestors was easing.
- Trump stated he had no immediate plans to remove Fed Chair Powell.
- November producer prices were softer than expected.
- Gold receded below $4,600 amid a stronger US Dollar.
- Retail Sales rose more than expected.
- The US Dollar Index (DXY) is gaining ground.
- US Nonfarm Payrolls (NFP) rose by 50,000 in December.
The asset is experiencing a pullback after a period of gains. A combination of factors, including decreased geopolitical risk, profit-taking, and a strengthening dollar, are weighing on prices. While underlying support remains due to expectations of potential Fed rate cuts, the near-term outlook suggests continued volatility as the market reacts to shifting economic data and policy pronouncements.