Gold dropped more than 2% to around $4,840 per ounce on Thursday, trimming gains from a two-day recovery, pressured by renewed selling after Federal Reserve caution on rate cuts. Fed Governor Lisa Cook said she would not support additional cuts, prioritizing persistent upside inflation risks over signs of a slowing labor market. This, combined with President Trump’s nomination of Kevin Warsh as the next Fed chair, seen as more hawkish than other contenders, led markets to price at a slower pace of potential rate cuts. However, Trump said he wouldn’t have nominated Warsh if he favored rate hikes and sees little doubt the Fed will cut rates again. Elsewhere, US–Iran tensions lingered despite plans for nuclear talks in Oman on Friday, with Washington not ruling out strikes. Earlier this week, gold surged more than 6%, marking its largest intraday rise since 2008, fueled by dip-buying.
