Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices moved lower on Thursday, easing back from strong gains earlier in the week as a firmer U.S. dollar and caution ahead of key U.S. labor market data tempered investor demand for bullion. While prices retreated, downside pressure remained limited amid ongoing geopolitical tensions that continued to underpin safe-haven interest.
By mid-session in European trade, spot gold was down 0.8% at $4,422.34 an ounce, while U.S. gold futures slipped 0.7% to $4,431.09 per ounce. The pullback came as traders locked in profits after a sharp rally at the start of the week, which had been driven largely by geopolitical concerns and expectations of looser monetary policy later this year.
Dollar Strength Pressures Bullion
Gold’s decline coincided with continued strength in the U.S. dollar. The dollar index held onto gains from the previous two sessions, making dollar-denominated commodities such as gold more expensive for holders of other currencies. This currency effect has reduced near-term appetite for bullion, particularly as investors remain cautious ahead of major U.S. economic releases.
Market focus is now firmly on Friday’s U.S. nonfarm payrolls report, one of the most influential data points for shaping expectations around Federal Reserve policy. A weaker-than-expected jobs reading could reinforce bets that the Fed will move toward interest rate cuts later in the year, a scenario that would typically support gold by lowering real yields and the opportunity cost of holding non-yielding assets.
U.S.-Venezuela Tensions Limit Downside
Despite the softer tone, losses in gold were relatively modest, as ongoing geopolitical developments continued to provide a layer of support. Tensions between the United States and Venezuela remained in focus after U.S. forces seized two oil tankers linked to Venezuelan crude shipments on Wednesday. One of the vessels was reportedly sailing under a Russian flag, adding a further international dimension to the standoff.
U.S. officials said the actions were aimed at disrupting sanctioned oil flows that help finance the Venezuelan government and circumvent U.S. restrictions. The seizure of a tanker associated with Russia drew sharp criticism from Moscow, which reportedly described the move as “blatant piracy” and demanded the return of its nationals among the crew.
These developments have sustained demand for traditional safe-haven assets, helping to cushion gold from a deeper correction despite the headwinds from a stronger dollar.
Bullish Long-Term Outlook Remains Intact
Looking further ahead, some analysts remain optimistic about gold’s medium-term prospects. HSBC analyst James Steel said gold prices could rise to $5,000 an ounce in the first half of 2026, driven by persistent geopolitical risks, growing fiscal pressures, and sustained investment demand. While he expects continued volatility and periodic sharp pullbacks, he believes underlying support for gold remains strong.
Gold reached a record high near $4,548 an ounce at the end of December 2025, and analysts note that momentum from safe-haven flows, policy uncertainty, and a weaker longer-term dollar trend could carry prices higher into early 2026.
Other Metals Also Decline
The broader metals complex also traded lower on Thursday as investors reassessed risk positions following recent surges. Silver prices dropped sharply, falling 4.7% to $73.935 per ounce, while platinum declined 2.6% to $2,208.55 per ounce.
Industrial metals followed suit. Benchmark copper futures on the London Metal Exchange slipped 2% to $12,634 per ton, while U.S. copper futures fell 1.9% to $5.7518 a pound.
Overall, while short-term profit-taking and dollar strength weighed on precious and industrial metals, underlying support from geopolitical uncertainty and expectations of easier monetary policy continues to shape a broadly constructive outlook for gold as markets move deeper into the year.
