New York, Jan 16, 2026, 10:04 EST — Regular session
- Bullion slipped back from record levels, weighed down by profit-taking and less intense geopolitical news that eased safe-haven buying.
- Traders continue to debate the duration of restrictive U.S. rates, a crucial driver for gold prices.
- Gold-linked ETFs and miners showed a mixed picture in early New York trading.
Gold slipped on Friday as investors cashed in gains following recent record highs, while signs of easing geopolitical tensions dulled some of the metal’s appeal as a safe haven. Spot gold dropped 0.2% to $4,606.54 an ounce by 9:14 a.m. ET, still poised for a second straight weekly rise of roughly 2.1% after hitting a record $4,642.72 on Wednesday. U.S. February gold futures edged down 0.3% to $4,610.70. “It’s a general retreat in the commodity complex,” said Marex analyst Edward Meir, highlighting profit-taking and de-escalation in the Middle East. Data from LSEG showed markets pricing in a first quarter-point rate cut in June, while physical demand in India remained soft and China premiums stayed firm ahead of the Lunar New Year. 1
The drop is significant because gold remains close to a recent high, with heavy positioning in play. In a market running hot, it takes little—just steadier headlines or a stronger dollar—to deflate some of the excess.
Rates still hold the key. Since gold offers no interest, it often loses appeal when investors can stash cash in higher-yielding options like Treasuries or money markets and earn returns just by waiting.
Traders often turn to bullion to shield themselves from political turmoil. But when that anxiety fades, even momentarily, the resulting sell-off can be swift.
U.S. jobless claims on Thursday pushed the dollar index to its highest since Dec. 2, making gold pricier for those using other currencies. Peter Grant, VP and senior metals strategist at Zaner Metals, said recent figures have stalled expectations for the first half of the year, keeping the dollar near multi-week highs and weighing on gold. The Federal Reserve is widely expected to pause rate moves at its Jan. 27-28 meeting, even though markets still factor in at least two quarter-point cuts later this year. 2
That tug-of-war between solid data and rate-cut speculation keeps traders on edge. It’s also why gold can jump sharply on second-tier reports that shift rate outlooks.
Gold-linked U.S.-listed vehicles showed a mixed start. SPDR Gold Shares ticked up roughly 0.2%, but the VanEck Gold Miners ETF and its junior miners sibling slipped about 0.2%. Meanwhile, Newmont and Agnico Eagle Mines dipped a bit, and Wheaton Precious Metals fell nearly half a percent.
The downside scenario is clear enough. Should U.S. data continue to beat expectations, both the dollar and bond yields could push higher. That might escalate “profit-taking” into a more severe sell-off, particularly with gold hovering near record highs.
The focus now shifts to the Fed’s signal and how markets interpret it. The upcoming policy meeting is set for Jan. 27-28, with a decision and press briefing scheduled for Jan. 28. 3
