Gold slipped on Thursday as investors booked profits after three consecutive sessions of record highs, while an apparent softer tone from U.S. President Donald Trump on the Federal Reserve chair and Iran dampened safe-haven demand for bullion.
Spot gold was down 0.6% at $4,594.66 per ounce, as of 0137 GMT. In the previous session, bullion hit a record high of $4,642.72.
U.S. gold futures for February delivery slipped 0.8% to $4,599.50.
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.
Analysts say worries of Fed independence and regarding trust in U.S. assets have added to safe-haven demand for bullion.
Meanwhile, U.S. retail sales rose above expectations in November, while PPI met monthly forecasts but exceeded annual estimates, following weaker-than-expected December core CPI figures released on Tuesday. Traders continue to anticipate two interest rate cuts this year.
Later in the day, investor focus will be on U.S. weekly jobless claims for the first week of January to assess labour market conditions for more clues on monetary policy.
A low-interest-rate environment, geopolitical and economic uncertainty traditionally favour non-yielding assets such as gold.
Trump said Iran’s crackdown on nationwide protests appeared to be easing, while Tehran warned it would strike U.S. military bases in the region if Washington launched an attack.
Elsewhere, Trump reiterated on Wednesday that the U.S. needs Greenland and that Denmark cannot be relied upon to protect the island, even as he said that “something will work out” with respect to the future governance of the Danish overseas territory.
The remarks came shortly after a high-stakes meeting between U.S., Danish and Greenlandic officials.
Spot silver fell 5.3% to $87.88 per ounce after hitting an all-time high of $93.57 earlier in the session.
Spot platinum receded 4% to $2,288.05 per ounce, a one-week high, after scaling a record peak of $2,478.50 on December 29.
Palladium lost 2.5% to $1,753.53 per ounce and hovered near a one-week low.
