Gold eased in early Asian trade on Friday, retreating after a volatile session that combined strong safe-haven buying with profit-taking and produced both record highs and rapid price reversals.
Spot gold fell 0.5% to $5,342.70 an ounce, while April gold futures were up 0.3% at $5,365.39/oz as of 20:13 ET (01:13 GMT). Despite the pullback, the metal remained on course for an exceptional monthly performance.
On Thursday bullion climbed to nearly $5,600/oz amid reports that the U.S. was planning further attacks on Iran, a development that pushed traders toward traditionally safer assets. That episode contributed to a whipsaw trading day in which prices first rose to record levels and then retreated as participants booked profits.
Other precious metals also cooled on Friday after acute volatility earlier in the week. Spot silver lost 1% to $114.0470/oz, remaining close to a Thursday record high, while spot platinum dropped nearly 2% to $2,600/oz.
Monthly performance and market drivers
For January, spot gold was trading up nearly 24%, positioning the metal for its best monthly advance since the 1980s. Over the month the yellow metal added roughly $1,000/oz as investors sought refuge in metals and other physical assets.
Heightened global geopolitical tension - notably between the U.S. and other world powers - helped to amplify demand for safe havens. A sharp decline in the dollar, driven by growing concerns over U.S. fiscal health, also supported metals, alongside continuing uncertainty about the path of U.S. interest rates.
Other metals were swept up in the buying trend. Silver was set to add more than 62% for the month, emerging as the standout performer. Platinum was trading up 28.4%, and palladium was up 25.3% for January.
Market context and trade dynamics
The recent price action illustrated a mix of forces: renewed haven demand prompted by geopolitical reports, and near-term profit-taking that produced sharp intraday swings. Futures and spot markets reflected these competing impulses, with slight divergence between spot declines and a modest rise in front-month futures during the early Asian session.
Moving forward, these same drivers - geopolitical tensions, dollar direction, and uncertainty over U.S. interest rates - are likely to remain central influences on bullion and other precious metals, although short-term volatility can produce abrupt reversals as positions are adjusted.