Gold prices fall on increased risk appetite, profit-booking

Kitco Media
By Reuters
Published:
Updated:
Reuters
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Jan 22 (Reuters) - Gold prices fell on Thursday as risk appetite improved after U.S. President Donald Trump backed off from threats of Greenland‑related tariffs, with profit-booking in the wake of recent gains adding pressure.

Spot gold slipped 0.4% to $4,819.39 per ounce, as of 08:57 a.m. ET (1357 GMT), after falling nearly 1% earlier in the session.

U.S. gold futures for February delivery lost 0.3% to $4,821 per ounce.

U.S. stock index futures climbed on Thursday, signalling renewed buying appetite after Trump dialled back his threat of tariffs against European countries.

"We have seen significant resurgence in risk appetite that essentially prompted the market to be a little less cautious of risk assets and that resulted in less appetite for gold and some profit-taking," said Bart Melek, global head of commodity strategy at TD Securities.

Trump launched his Board of Peace, initially designed to cement Gaza's rocky ceasefire but which he foresees taking on a wider role. On Ukraine, Trump has said peace efforts were "getting close", ahead of a meeting with President Volodymyr Zelenskiy in Davos.

Meanwhile, U.S. Supreme Court justices during arguments over Trump's bid to fire Federal Reserve Governor Lisa Cook seemed to embrace the idea that the central bank's independence to set monetary policy must be preserved.

The U.S. central bank is widely expected to hold interest rates steady at its policy meet this month.

Investors now await November Personal Consumption Expenditures (PCE) data due at 10 a.m. ET, for cues on the Fed's policy path.

Elsewhere, spot silver was up 0.2% at $93.47 an ounce, after hitting a record high of $95.87 on Tuesday.

"Silver at this stage is a little overdone and it should start correcting once off the retail pressure ... we are seeing more liquidity available globally and that should at some point start precipitating a reversal in prices," Melek added.

Spot platinum rose 1.5% to $2,520.45 per ounce after touching a record peak of $2,511.80 on Wednesday, while palladium gained 1.1% to $1,860.25.

Reporting by Sarah Qureshi in Bengaluru; Editing by Joe Bavier

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