Continuing the losses from the previous session, demand for safe havens declined and expectations of a near-term interest rate cut by the Federal Reserve faded.
Geopolitical tensions surrounding Iran have eased after President Donald Trump reiterated that he may postpone any military action, citing signs of a waning crackdown on protests and the absence of widespread executions.
Meanwhile, strong US economic data reinforced the view that monetary policy will remain restrictive for longer, prompting investors to reduce their bets on an imminent interest rate cut by the Federal Reserve. Markets now widely expect interest rates to remain unchanged later this month, with the next full-scale easing delayed until mid-2026.
Despite this decline, gold remains close to record levels and is still poised for weekly gains, supported by its strong performance earlier in the week.