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Gold prices edged lower toward $4,580 after retreating from a record high of $4,643, pressured by stronger US economic data and easing geopolitical tensions. Robust US Retail Sales, firm Producer Price Index data, and a lower unemployment rate reinforced expectations that the Federal Reserve will keep interest rates unchanged for longer, weighing on non-yielding bullion. A firmer US dollar further dampened demand. While reduced immediate geopolitical risks softened safe-haven flows, lingering concerns over Federal Reserve independence and Middle East uncertainty continue to provide underlying support to gold prices.

Key Highlights

* Gold retreats from record highs as strong US data support higher rates for longer.

* Easing Iran-related tensions reduce near-term safe-haven demand.

* Firm US Dollar Index pressures dollar-denominated gold prices.

* Fed officials signal resilience in the US economy, delaying rate-cut expectations.

* Technical indicators still show a broader bullish bias despite cooling momentum.

Gold prices eased in the latest session, trading near $4,580 per troy ounce after hitting a fresh all-time high of $4,643 previously. The pullback reflects profit-taking and a shift in market expectations following stronger-than-anticipated US economic data, which has reduced the urgency for Federal Reserve rate cuts and weighed on non-interest-bearing assets like gold.

US Retail Sales rose 0.6% in November, significantly beating market expectations, while the Producer Price Index surprised on the upside with both headline and core inflation running at 3% year-on-year. Combined with a decline in the US unemployment rate to 4.4%, the data reinforced the view that monetary policy is likely to remain restrictive for longer. This outlook was echoed by major investment banks, with Morgan Stanley pushing back its rate-cut expectations to mid-2026. A firmer US Dollar Index, hovering near 99.10, further capped upside in gold by reducing foreign-currency demand.

Safe-haven demand for gold also moderated as geopolitical tensions showed signs of easing. US President Donald Trump indicated that Iran’s crackdown-related killings were subsiding and that no mass executions were planned, reducing immediate escalation fears. However, uncertainty persists, as Washington continues to monitor developments and has warned of possible economic and military actions against Tehran.

At the same time, concerns over the Federal Reserve’s independence have emerged as a supportive factor. Fed Chair Jerome Powell criticized political pressure on the central bank, keeping longer-term risk premiums embedded in gold prices.

From a technical perspective, gold remains above its short-term and medium-term moving averages, preserving the broader bullish trend. However, momentum indicators suggest the rally may be losing steam, opening the door for near-term consolidation.

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