Gold Prices Ease Amid Softening Geopolitical and Trade Pressures: What This Means for Investors and Businesses in Oman
Gold prices declined on Thursday following a record high the previous day, as easing geopolitical and trade tensions influenced the market. This shift came after US President Donald Trump indicated a potential pause in military action against Iran and a decision to delay tariffs on critical minerals.
By 0931 GMT, spot gold fell 0.4% to $4,602.99 per ounce, down from Wednesday’s peak of $4,642.72. Meanwhile, US gold futures for February delivery dropped 0.6% to $4,607.60.
The downward pressure on gold and silver prices followed Trump’s announcement that he would, for the time being, refrain from imposing tariffs on rare earths, lithium, and other critical minerals. Instead, he instructed his administration to source these materials from international partners. Additionally, he mentioned reports of a reduction in violence linked to Iran’s crackdown on protests, signaling a cautious approach after earlier threats of intervention.
Typically, gold’s role as a safe haven intensifies amid geopolitical tensions and economic uncertainty, particularly in environments of low interest rates. Market expectations indicate the US Federal Reserve will maintain current interest rates at its January 27–28 meeting, with at least two rate cuts potentially coming later this year.
In related metals markets, spot silver dropped 3% to $89.97 an ounce after reaching an all-time high of $93.57 earlier in the session. Platinum fell 1.8% to $2,340.54 an ounce following its record peak late last year, and palladium declined 1.2% to $1,804.29. — Reuters
Special Analysis by Omanet | Navigate Oman’s Market
The recent easing of geopolitical tensions and the US decision to delay tariffs on critical minerals signal a momentary cooling in safe-haven demand for gold and precious metals, potentially reducing short-term volatility in Oman’s metal-dependent sectors. For businesses and investors, this creates an opportunity to reassess exposure to commodity markets while remaining vigilant for renewed geopolitical risks that could trigger price spikes. Smart entrepreneurs should consider diversifying supply chain sources and exploring partnerships in international mineral markets to capitalize on shifting trade dynamics.
