Investing.com – Like oil, gold seems to have a temporary loss of mojo, with the sudden decrease in U.S.-Iran tensions pricking the safe-haven bubble in the yellow metal.
Yet gold prices are holding steady at the $1,500 support level on anticipation that all may not remain well between the Trump administration and the Islamic Republic.
Gold futures for February delivery on New York’s COMEX fell $1.63, or 0.1%, at $1,554.08 per ounce.
Spot gold, which tracks live trades in bullion, was down $20.15, or 1.3%, at $1,553.74 by 2:20 PM ET (19:20 GMT).
Iran's powerful Revolutionary Guard issued new threats to Washington on Thursday, with one senior commander warning of "harsher revenge soon" and another saying this week's missile strikes were only the start of a series of attacks across the region.
The warnings came after President Donald Trump refrained from a military response to Tehran for its rocket attacks on U.S.-Iraqi airbases on Tuesday in the aftermath of the U.S. killing of Iranian General Qassem Soleimani.
“Gold prices fell under heavy pressure on Wednesday and traders have continued to sell gold as the U.S.-Iran conflict has seemingly ended … for now,” said Eric Scoles, precious metals strategist at RJO Futures in Chicago.
“The good news, though, is that after falling under heavy pressure, gold has rejected the lows today, which may be a sign we have solid support at $1,550” in anticipation of more tensions, Scoles said.
The new head of the Quds Force, which handles Iran's foreign military operations, said on Thursday he would follow the course pursued by his predecessor Soleimani.
"We will continue in this luminous path with power," Brigadier General Esmail Ghaani said, Reuters reported.
Gold was also pressured on Thursday by media reports out of Beijing that Vice Premier Liu He will travel to Washington between Jan. 13 and 15 to sign a phase one deal with the White House, just as Trump had said.
Gold and its contrarian trade, the dollar, were main hedges for investors betting against the U.S.-China deal last year.
The dollar index, which pits the greenback against a basket of six currencies, was up 0.2% at 97.15 on Thursday.