Gold edged lower on Thursday, retreating modestly after setting another record in the previous session, as some investors moved to lock in profits.
Despite the pullback, bullion remains close to the 4,600 level, underpinned by a constructive outlook.
A slight easing in geopolitical and political tensions helped temper immediate safe-haven demand. Signals of a softer tone from Donald Trump regarding Iran, alongside indications that his dispute with Jerome Powell may not escalate further in the near term, encouraged short-term profit-taking after an extended rally. However, underlying geopolitical risks remain present. Tensions in Eastern Europe continue, and a lack of progress in the discussions surrounding Greenland keeps uncertainty elevated.
From a macroeconomic perspective, the latest producer price data pointed to stable inflation. This reinforces the wait-and-see view regarding monetary policy, although two rate cuts are still expected by the end of this year. Attention now turns to initial jobless claims. Additional signs of labor market softening would likely offer renewed support to gold.
