FX.co ★ Gold Extends Losses

Gold prices declined by approximately 1% to around $4,560 per ounce on Friday, continuing the downward momentum from previous sessions. This decline was prompted by a reduction in safe-haven demand and diminishing prospects for imminent interest rate reductions by the Federal Reserve. The geopolitical tensions related to Iran saw further relaxation as President Donald Trump indicated a potential delay in any military action. He attributed this to signs of moderation in the crackdown on protests and assurances that significant executions would not occur. Concurrently, robust US economic data bolstered the belief that the current restrictive monetary policy might persist for a longer duration, leading investors to further reduce expectations for a swift Fed rate cut. The market consensus now largely anticipates no change in rates later this month, with the earliest anticipated rate easing being postponed until mid-2026. Despite this downturn, gold remains near historically high levels and is poised for a weekly increase, buoyed by its earlier gains in the week.