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Gold prices edged down on Friday, after declining as much as 1 percent in the previous session, as easing tensions in the Middle East prompted investors to move back to riskier bets.
Spot gold fell 0,1 percent to $1 550,66 per ounce by 0732 GMT. Prices fell to their lowest since January 3 at $1 539,78 on Thursday.
US gold futures eased 0,2 percent to $1 551,60.
Meanwhile, global stocks rallied to hit record highs after comments from US President Donald Trump and Iran pointed to a de-escalation in military tensions, even as the US increased sanctions on Iran.
“We are looking at the risk-on sentiment, a stronger dollar, and surging equities,” Stephen Innes, a market strategist at AxiTrader said.
“Besides the US president suggesting that Iran is standing down, House Speaker Nancy Pelosi’s legislation to limit Trump’s executive powers against Iran is reducing the pressure in the Mideast.
The US House of Representatives on Thursday passed a resolution to stop Trump from further military action against Iran.
Gold, a safe asset during political and economic uncertainties, had surged over $1 600 on Wednesday after Iran launched missile strikes on US forces in retaliation to the killing of its top commander in a drone attack.
Further weighing on gold, the dollar looked set to post its best week in two months.
On the trade front, a “Phase 1” trade deal between Washington and Beijing could be signed shortly after January 15,Trump said on Thursday. — Reuters.
Peter Tanyanyiwa
Online Reporter