Gold fell to around $4,920 per ounce on Thursday, trimming gains from a two-day recovery, as investors reacted to renewed selling following Federal Reserve caution over interest rate cuts.
Fed Governor Lisa Cook said she would not support further reductions, citing persistent upside inflation risks despite signs of a slowing labor market.
Her remarks, combined with President Donald Trump’s nomination of Kevin Warsh as the next Fed chair, seen as more hawkish than other contenders, weighed on gold, with markets pricing in a slower pace of potential rate cuts.
Trump, however, sought to reassure markets, stating he would not have nominated Warsh if he favored rate hikes, and signaled confidence that the Fed will eventually resume cuts.
Meanwhile, lingering US–Iran tensions added caution to the market, despite scheduled nuclear talks in Oman on Friday. Washington has not ruled out military strikes if diplomacy fails.
Earlier this week, gold surged more than 6%, marking its largest intraday rise since 2008, fueled by aggressive dip-buying amid global economic uncertainties and persistent geopolitical risks.
Analysts say the metal remains sensitive to monetary policy signals and geopolitical developments, with the market closely watching the Fed’s next moves and ongoing US–Iran negotiations.
