FX.co ★ Gold Poised for Second Weekly Loss

Gold's price decreased to approximately $4,750 per ounce on Friday, extending the previous day's 3.8% loss. It is now heading toward a consecutive weekly decline due to ongoing selling pressure. This downturn follows a period in January where gold attained record highs, fueled by rising geopolitical risks, apprehensions concerning the Federal Reserve's autonomy, and speculative buying activity in China. Additionally, a reduction in geopolitical tensions has dampened gold's traditional appeal as a safe-haven investment, notably after Iranian and US officials confirmed discussions in Oman, prompting investors to carefully watch developments from these talks. In parallel, US job cuts reached 108,400 in January, marking the highest figure for this month since 2009. Furthermore, initial unemployment claims increased to 231,000, and ADP payroll numbers were below projected expectations. This series of disappointing labor statistics has bolstered the anticipation of Federal Reserve interest rate reductions later in the year, with the market's focus on a potential initial adjustment in June.