Gold eases as strong US data, easing geopolitical tensions sap momentum

FE Team | Published: January 17, 2026 00:00:53

Gold prices extended losses from the previous session on Friday, as stronger-than-expected US economic data and easing geopolitical tensions in Iran hampered bullion's bullish momentum, reports Reuters.
Spot gold eased 0.1 per cent to $4,610.86 per ounce by 1217 GMT. However, the metal is poised for a weekly gain of about 2 per cent after scaling a record peak of $4,642.72 on Wednesday.
US gold futures for February delivery edged 0.2 per cent lower to $4,615.
"There was a lot of momentum in the (gold) market, which seems to have faded slightly at the moment....the economic news flow out of the US has been causing some headwinds rather than tailwinds as of late, which is reflected in a somewhat stronger US dollar," said Julius Baer analyst Carsten Menke.
The US dollar hovered near a six-week high on the back of positive economic data on Thursday showing initial jobless claims dropped 9,000 to a seasonally adjusted 198,000 last week, below ?economists' forecast of 215,000.
A firmer dollar makes greenback-priced bullion more expensive for overseas buyers.
On the geopolitical front, people inside Iran, reached by Reuters on Wednesday and Thursday, said protests appeared to have abated since Monday.
Safe-haven gold tends to do well during times of geopolitical and economic uncertainty.
Meanwhile, gold demand in India stayed muted this week as prices hit record highs again, taking the shine off retail buying, while bullion traded at a premium in China as demand remained steady ahead of the Lunar New Year.
Spot silver shed 1.6 per cent to $90.82 per ounce, although it was headed for a weekly gain of over 13 per cent after hitting an all-time high of $93.57 in the previous session.
"The silver market seemed very determined to reach the $100 per ounce threshold before moving lower again....speculative traders are keeping an eye on that level even though it would not be sustainable in the medium to longer-term," Menke added.