Gold prices fell on Friday, pressured by a firmer dollar, but were set for their biggest monthly gain since 1980 as investors piled into the safe-haven metal amid persistent geopolitical and economic uncertainties.
Spot gold was down 0.9% at $5,346.42 per ounce, as of 0124 GMT, after scaling a record $5,594.82 the previous day.
Prices have risen more than 24% so far in January, heading for a sixth straight month of gains and the largest monthly advance since January 1980.
U.S. gold futures for February delivery climbed 1.3% to $5,390.80 per ounce on Friday.
Spot silver was down 0.2% at $115.83 an ounce, after hitting a record high of $121.64 on Thursday. The metal has gained 62% so far this month, on track for its best-ever monthly performance.
The dollar index edged higher, supported in part by the Federal Reserve’s decision on Wednesday to leave interest rates unchanged, but was poised for a second straight weekly decline. [USD/]
Fed Chair Jerome Powell said inflation in December was likely well above the central bank’s 2% target.
U.S. economic data on Thursday showed weekly initial jobless claims fell, indicating layoffs remained low, although soft hiring kept consumers pessimistic about the labour market.
U.S. President Donald Trump is weighing options against Iran that include targeted strikes on security forces and leaders to inspire protesters, multiple sources said, even as Israeli and Arab officials said air power alone would not topple the clerical rulers.
Gold exports from Switzerland rose 27% month-on-month in December as shipments to Britain jumped to their highest since August 2019, Swiss customs data showed on Thursday.
UBS raised its gold price target to $6,200 per ounce for March, June and September 2026, compared with a prior forecast of $5,000, citing stronger-than-expected demand stemming from increased investment.
Spot platinum lost 0.9% to $2,606.15 per ounce after hitting a record $2,918.80 on Monday, while palladium rose 0.5% to $2,016.69.
