New York, Jan 18, 2026, 12:08 EST — Market closed.
- After hitting record highs, gold slipped late Friday but still notched its second consecutive weekly gain.
- A stronger dollar and quieter news from Iran eased some of the safe-haven buying.
- Attention shifts this week to U.S. inflation figures and the Federal Reserve meeting set for later this month.
Gold enters the new week just shy of record highs following a steep drop late last week, as traders balance easing geopolitical tensions against a persistently tight U.S. rate outlook.
Spot gold slipped 0.5% on Friday to $4,592.29 an ounce, after earlier dropping to $4,536.49. U.S. gold futures for February closed 0.6% lower at $4,595.40. Despite the pullback, bullion still posted about a 1.9% gain for the week, following a record high of $4,642.72 reached on Wednesday. (Reuters)
The moves are crucial because gold’s recent rally hinges on two key factors: its appeal as a “safe haven” amid political turmoil and the belief that U.S. interest rates will drop eventually. Since gold doesn’t pay interest, it gains appeal as yields fall and the dollar loses strength.
The dollar index — measuring the greenback against key currencies — climbed to its strongest point since Dec. 2 late in the week, boosted by U.S. jobless claims data. At the same time, Washington softened its stance on Iran. “The dollar index is at a multi-week high and that’s providing a bit of a headwind for gold,” said Peter Grant, vice president and senior metals strategist at Zaner Metals. (Reuters)
Part of the pullback appeared to be just profit-taking. Marex analyst Edward Meir called it “a general retreat” following weeks of sharp gains, as headlines suggested easing tensions in the Middle East.
Record prices are starting to weigh on the physical market in key consumer hubs. In India, dealers offered discounts as steep as $12 an ounce off official domestic prices, Reuters reported. A Mumbai dealer described jewellery demand as “pretty much dead” at these levels. Meanwhile, in China, premiums edged up slightly ahead of Lunar New Year — a move that independent analyst Ross Norman found “surprising,” given buyers there usually react sharply to price changes. (Reuters)
Shares of SPDR Gold Shares (GLD), one of the biggest gold ETFs listed in the U.S., slipped 0.48% to close at $421.29 on Friday. (MarketWatch)
Other precious metals eased back heading into the weekend. Spot silver dipped on Friday, and platinum also slipped, though both were still on track for weekly gains after sharp moves earlier this week.
The risk for bullion bulls is clear: if the dollar remains strong and upcoming U.S. data prompt the Fed to stay cautious, gold’s dips could deepen. Retail demand in parts of Asia is already feeling the pinch from high prices, and that often accelerates when momentum slips.
Another key test arrives swiftly. Markets will digest China’s quarterly GDP on Monday, then shift focus to Thursday’s U.S. core PCE inflation—Fed’s favorite inflation measure excluding food and energy—and wrap the week with Friday’s “flash” PMI surveys, providing a first glimpse at January’s business activity. (S&P Global)
U.S. markets will be closed Monday for the Martin Luther King Jr. holiday, often leading to lighter liquidity at the start of the week. Investors are turning their attention to the Federal Reserve’s meeting on Jan. 27-28, with Chair Jerome Powell set to hold a press conference on Jan. 28. (Federalreserve)
