IAU is trading 3.1% down in pre-market action, tracking a sharp pullback in spot gold and futures as market sentiment shifts away from safe-haven assets.
- Geopolitical risk premia are receding amid easing Middle East tensions, prompting traders to reduce safe-haven exposure following recent price strength.
- Market focus has shifted to upcoming U.S. core PCE inflation data, which is supporting higher real yields and increasing the opportunity cost of holding non-yielding assets like gold.
- The move reflects a broader correction in the precious metals sector as investors recalibrate expectations ahead of key economic prints.