Spot gold was 3.1% lower at $5,249.99 an ounce by 11:57 AM ET, after earlier touching $5,594.82 an ounce.
- Donald Trump has added more macroeconomic pressure and increased the fears of another war after it pressed Iran to negotiate a nuclear deal.
- Gold has been on a wild rally in the month of January as demand for gold has been widening across the globe.
- On Wednesday, Tether CEO told Reuters that the company plans to allocate 10%-15% of its investment portfolio to physical gold.
Gold fell more than 3% on Thursday as investors took profit after a record rally in the precious metal over the past several weeks.
Spot gold was 3.1% lower at $5,249.99 an ounce by 11:57 AM ET, after earlier touching $5,594.82 an ounce. Gold futures for February deliveries fell nearly 1% to $5,299.50 an ounce.
Buying Opportunity
Retail sentiment on SPDR Gold Shares ETF on Stocktwits remained in the ‘extremely bullish’ territory over the past 24 hours, amid ‘extremely high’ message volumes.
One user called the fall in gold prices a ‘buying opportunity’.
Another user called it a ‘huge bear trap’.
Macro Pressures Helped The Rally
Gold has been on a wild rally in the month of January as demand for gold has been widening across the globe. From crypto to central banks all have been hoarding gold in the light of macroeconomic uncertainties.
Donald Trump has added to that pressure and increased the fears of another war after he pressed Iran to negotiate a nuclear deal, who has threatened to retaliate against the U.S. and Israel.
On Wednesday, Tether CEO told Reuters that the company plans to allocate 10%-15% of its investment portfolio to physical gold. Several major central banks have already been hoarding more physical gold.
"For our own portfolio, it's reasonable that we are going to have around 10% in bitcoin and 10% to 15% in gold," Ardoino said, according to a Reuters report.
Fed Leaves Rate Unchanged
The U.S. Federal Reserve on Wednesday held its benchmark interest rates steady at 3.50% - 3.75% in its first policy meeting of 2026, on the back of encouraging labor market data and stabilizing unemployment rate.
The move was widely anticipated by the markets after policymakers delivered three consecutive 25-bps rate cuts in September, October, and December 2025 amid rising inflation and growing unemployment at the time. In its latest update, the Fed noted that inflation still remains somewhat elevated.
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