Gold Holds Near Record Levels as Strong U.S. Jobs Data and Calmer Iran Outlook Cool Momentum

Gold prices were largely steady on Friday, hovering just below the record highs reached earlier in the week, as stronger-than-expected U.S. labour data reduced expectations for near-term Federal Reserve rate cuts, while easing geopolitical tensions around Iran curbed safe-haven demand.

Spot gold slipped 0.1% to $4,608.55 an ounce by 02:11 ET (07:11 GMT), while U.S. Gold Futures edged down 0.2% to $4,611.10. The metal has retreated from Wednesday’s all-time peak of $4,642.72 per ounce, but remains on course for a weekly gain of around 2%.

The tone in the market shifted after data showed U.S. initial jobless claims fell more than expected last week, highlighting the continued resilience of the American labour market. The stronger reading reinforced the view that the Federal Reserve may keep interest rates higher for longer, pushing back expectations for rate cuts later this year.

Higher borrowing costs typically weigh on gold, which offers no yield and becomes less attractive when interest rates remain elevated.

In the wake of the data, the U.S. dollar strengthened, with the Dollar Index climbing to a six-week high against a basket of major currencies. A firmer greenback tends to pressure bullion by making it more expensive for buyers using other currencies.

Geopolitical dynamics also played a role. Gold had surged earlier in the week as investors sought safety amid escalating unrest in Iran, where widespread protests and government crackdowns raised fears of broader instability and potential spillovers into global markets.

Those fears have since eased somewhat after U.S. President Donald Trump softened his rhetoric on possible military intervention, indicating that violent crackdowns in Iran may be slowing. The reduced likelihood of immediate escalation trimmed part of gold’s geopolitical risk premium.

Elsewhere in the metals complex, prices moved broadly lower on Friday under the weight of a stronger dollar. Silver fell 1.7% to $90.87 per ounce, while platinum slid 2.1% to $2,361.31. Copper also retreated, with London Metal Exchange futures down 1.7% to $12,907.20 a ton and U.S. copper contracts slipping 1.8% to $5.88 a pound.

Despite the near-term pause, gold remains underpinned by expectations of eventual U.S. rate cuts later in the year and lingering geopolitical uncertainties, keeping the broader trend supportive even as momentum cools.