Gold Drops to $4,591 as Dollar Surges and Iran Eases—Silver Falls 1.08%
Gold slips to $4,591 as dollar surges and Iran tensions ease, signaling cautious sentiment. Silver also dips 1.08% to $91.36...
Quick overview
- Gold prices have dropped to $4,591 due to a strengthening US dollar and easing tensions in Iran.
- Silver has also declined by 1.08% to $91.36 as safe-haven demand diminishes.
- Strong US labor data has reduced expectations for Federal Reserve rate adjustments, adding pressure on gold.
- Traders are monitoring key technical levels, with potential support for gold at $4,560 and silver at $87.50.
Gold slips to $4,591 as dollar surges and Iran tensions ease, signaling cautious sentiment. Silver also dips 1.08% to $91.36 amid fading safe-haven demand.
Dollar Strength Pressures Gold Prices
Gold (XAU/USD) struggled to hold its recent gains, slipping below the $4,600 mark and hitting an intraday low of $4,591. The drop came as the US dollar strengthened, fueled by unexpectedly strong labor data. According to the US Department of Labor, jobless claims fell to 198,000 for the week ending January 10—well below the forecast of 215,000. This upbeat data pushed the dollar to multi-week highs, reducing demand for dollar-denominated assets like gold.
Peter Grant, senior metals strategist at Zaner Metals, noted that the strong data makes it less likely for the Federal Reserve to adjust rates in the first half of 2026. That sentiment has added pressure to gold, which typically benefits from dovish Fed signals and a weaker dollar.
Iran Tensions Ease, Safe-Haven Demand Fades
Geopolitical uncertainty often drives gold demand, but recent developments have cooled investor nerves. President Donald Trump stated that Iran has “no plan for executions” regarding a detained protester, easing fears of escalation. However, he warned of “grave consequences” if any killings occur, keeping the situation tense but not explosive.
With tensions easing, gold’s appeal as a safe-haven asset has softened. Traders are watching closely for any sudden developments, but for now, the market is leaning risk-on.
Silver Follows Gold Lower
Silver (XAG/USD) is also under pressure, trading at $91.36, down 1.08%. Like gold, silver is reacting to the stronger dollar and calmer geopolitical climate. Investors appear cautious, with volume thinning and momentum indicators cooling.
Key Technical Levels to Watch
- Gold Resistance: $4,639.73, $4,681.21
- Gold Support: $4,560.00, $4,500.80
- Silver Support: $87.50, $86.53
- Silver Resistance: $93.35, $97.15
Gold remains inside a rising channel, but RSI is flattening—suggesting momentum fatigue. A break below $4,560 could trigger a move toward $4,500.
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