PRECIOUS-Gold eases as profit‑taking, easing geopolitical risks weigh

By Anmol Choubey

Jan 16 (Reuters) - Gold fell on Friday as investors booked profits after recent record highs, while signs of easing geopolitical tensions further dampened the metal's safe-haven appeal.

Spot gold XAU= was down 0.2% at $4,606.54 per ounce as of 09:14 a.m. ET (1414 GMT). However, the metal is poised for its second consecutive weekly gain, of about 2.1%, after scaling a record peak of $4,642.72 on Wednesday.

U.S. gold futures GCcv1 for February delivery edged 0.3% lower to $4,610.70.

"It's a general retreat in the commodity complex after weeks of aggressive gains, with some profit-taking. The de-escalation of Middle East tensions has also removed some of the geopolitical premium in gold and other metals, especially silver," said Marex analyst Edward Meir.

Geopolitical tensions appeared to ease as protests in Iran subsided, while U.S. President Donald Trump took a wait‑and‑see approach and Russia's President Vladimir Putin moved to mediate in Iran and de‑escalate the situation.

On the trade front, the U.S. and Taiwan struck a deal on Thursday that lowers tariffs on many of Taiwan's semiconductor exports and channels new investments into U.S. tech, and risks infuriating China.

Meanwhile, the Federal Reserve is expected to keep rates unchanged through the first half of the year, with a first 25‑basis‑point cut projected in June, as per data compiled by LSEG. FEDWATCH

Safe-haven gold tends to do well during times of geopolitical and economic uncertainty, as well as when interest rates are low.

"I still think we have a chance of getting to $5,000 sometime this year, punctuated with these big corrections in the meantime," Meir said.

Physical gold demand in India stayed weak this week as record-high prices dampened retail buying, while bullion traded at a premium in China on steady pre–Lunar New Year demand. GOL/AS

Spot silver XAG= shed 3.3% to $89.231 per ounce, although it was headed for a weekly gain of over 11% after hitting an all-time high of $93.57 in the previous session.

Spot platinum XPT= dropped 3.9% to $2,315.72 per ounce and headed for weekly gain, while palladium XPD= lost 3.4% to $1,740.01 per ounce.