NEW YORK, Jan 16, 2026, 17:05 ET — After-hours
- Gold retreats from this week’s peak as traders cash in profits
- Dollar strength and changing bets on Fed rate cuts weigh on non-yielding bullion
- Attention shifts to the Fed’s policy meeting late next month and new U.S. data releases
Gold prices dropped over 1% on Friday, with investors taking profits following a rally to record highs. Easing geopolitical tensions also weighed on demand for safe-haven assets. Spot gold dipped 0.5% to $4,592.29 an ounce by 1:39 p.m. ET, after hitting a low of $4,536.49 earlier in the day. 1
The dip hit as U.S. markets closed in on a long weekend, with traders increasingly betting on rates staying “higher-for-longer.” Gold, usually a go-to safe haven when risks flare, is feeling pressure from dollar strength and rising Treasury yields since it doesn’t yield interest. 2
The dollar got a lift Thursday after U.S. jobless claims dropped by 9,000 to 198,000 for the week ending Jan. 10, the Labor Department reported. That’s well below forecasts of 215,000. Nancy Vanden Houten, lead U.S. economist at Oxford Economics, said the data point to “at least stable labor market conditions.” 3
Spot gold slipped 0.1% to $4,614.93 by early Thursday afternoon in New York. February futures closed down 0.3%, settling at $4,623.70, as the dollar index surged to its highest point since Dec. 2. “The dollar index is at a multi-week high,” noted Peter Grant, vice president and senior metals strategist at Zaner Metals, adding this is a clear drag on bullion. 4
Retail buying is starting to feel the pinch from record gold prices. Indian dealers slashed premiums by as much as $12 an ounce this week. Chirag Thakkar, CEO of bullion importer Amrapali Group Gujarat, remarked, “Demand just isn’t there right now.” In China, premiums held steady but modest ahead of the Lunar New Year. Independent analyst Ross Norman noted, “despite the record prices, gold remains at a modest premium.” 5
Gold’s slip dragged miners lower. London’s precious metal miner index dropped 1.2% on Friday, with Endeavour Mining sliding 2.6%, according to Reuters data. 6
The week hasn’t moved in just one direction. On Thursday morning, spot gold dipped 0.8% to $4,589 an ounce, snapping a three-day streak of record highs. The pullback came as U.S. President Donald Trump adopted a softer stance on Iran unrest, easing the geopolitical risk premium behind the recent rally. 7
The tape remains volatile. A sudden spike in geopolitical tensions might lure buyers back, while weaker U.S. data could reignite talks of rate cuts. On the flip side, the risk is clearer: if yields climb further and the dollar holds strong, gold could slide sharply—especially if elevated prices continue to suppress physical demand.
The Federal Reserve’s policy meeting on Jan. 27-28 is next, with investors eager for clues on if and when rate cuts might reappear. 8
