Gold prices dip slightly as geopolitical tensions ease

Gold prices dipped slightly during Asian trading as geopolitical tensions eased. Despite this, the precious metal remained on track for strong weekly gains, supported by fundamental factors.

A relative calm in geopolitical tensions

The limited decline in gold prices followed reports suggesting that a large-scale military strike against Iran at this time would be unlikely to topple the government and could instead ignite a wider regional conflict.

Tehran's handling of internal protests is now being closely monitored before any potential military action is considered.

This news contributed to a temporary easing of geopolitical risks, particularly after US President Donald Trump hinted at the possibility of postponing any military action following Iran's pledge not to execute protesters.

Demand for safe havens declines

This relative easing of tensions has reduced immediate demand for gold as a safe haven, as some investors opted to take profits after the recent strong gains.

Gold prices were also pressured by strong US economic data released on Thursday, which prompted investors to reduce their bets on an imminent interest rate cut.

Federal Reserve decisions awaited

With the economic situation stable, markets widely expect the US Federal Reserve to keep interest rates unchanged at its upcoming meeting later this month, which has limited gold's short-term upward momentum.

Gold prices today

Gold prices fell during today's trading to near $4,593 per ounce before rebounding and currently trading above $4,600 per ounce, remaining close to their record highs.

Strong weekly performance despite the decline

Despite the slight decline, the price of gold has risen by more than 2% since the beginning of the week, recording its second consecutive weekly gain, continuing to trade within historically high ranges, supported by the continued global uncertainty and expectations of US monetary policy in the medium term.