Gold declined as investors prioritized upcoming U.S. economic reports over geopolitical developments, with platinum and other precious metals also retreating.
Spot gold slipped 0.9% to $4,453.85 an ounce as of 11:41 a.m. in London. The drop follows a 4% gain over the previous three sessions. Platinum fell 4.5%, silver lost 2.4% to $79.3181 an ounce after rising 10% this year, and palladium dropped 3.8%. The Bloomberg Dollar Spot Index was little changed.
Expectations for U.S. monetary policy influenced metal prices following recent weaker-than-expected factory data and ahead of Friday’s release of the December jobs report. Federal Reserve Governor Stephen Miran told Fox Business Network the central bank may need to cut interest rates by more than 1 percentage point in 2026, describing current policy as a drag on economic growth.
Geopolitical developments included President Donald Trump stating Venezuela may transfer up to 50 million barrels of oil to the United States. The White House declined to rule out military force in acquiring Greenland. China tightened export controls to Japan on goods with potential military applications.
While gold recently marked its best annual performance since 1979—supported by central-bank purchases and record-high prices—investors are also watching potential index rebalancing flows. Citigroup Inc. forecast roughly $6.8 billion in outflows each from gold and silver futures as the two largest commodity indexes adjust weightings.
Silver’s gains have been driven by strong retail demand, particularly in China, along with supply constraints and concerns over potential U.S. import tariffs.
