Gold prices fall amid profit-taking and de-escalation in Iran
Kyiv • UNN
The global gold market is correcting after reaching historical highs, with prices falling by more than 1%. Investors are taking profits, and geopolitical tensions in the Middle East have eased.
On Saturday, January 17, the global gold market is showing a correction after reaching historical records earlier in the week. The price of the precious metal fell by more than 1% as investors began to massively lock in profits, and geopolitical tensions in key regions somewhat eased. This is reported by Reuters, writes UNN.
Details
After gold set a new all-time high of $4,642.72 per ounce on Wednesday, a natural retreat began in the market. As of today, the spot price fluctuates between $4,592 and $4,602 per ounce. Analysts at "Marex" note that this is a "general retreat in the commodity complex" after weeks of aggressive growth.
Main pressure factors on price
De-escalation in the Middle East: protests in Iran, which fueled demand for safe-haven assets, began to subside. This was facilitated by the wait-and-see attitude of US President Donald Trump and the mediation efforts of Vladimir Putin.
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Dollar strengthening: the American currency remains near a six-week high amid stable US economic indicators.
Trade stability: the agreement reached on Thursday between the US and Taiwan to reduce tariffs on semiconductors somewhat calmed the markets, despite possible dissatisfaction from China.
Expert forecasts: the path to $5,000
Despite the current decline, most financial institutions maintain a "bullish" sentiment for 2026. In particular:
- J.P. Morgan and HSBC predict the price will reach $5,000–$5,055 per ounce in the first half or by the end of this year.
- UBS does not rule out a rise to $5,400 if political or financial risks escalate again.
- The US Federal Reserve is expected to keep interest rates unchanged until June, which also supports gold as a non-coupon-bearing asset.
Silver also came under pressure, falling 2.9% to $89.65 per ounce after its historical high.