09:10 AM EST, 01/16/2026 (MT Newswires) -- Gold futures weakened for a second day early Friday on easing international tensions while traders take profits following Wednesday record high.

Gold for February delivery was last seen down $31.80 to US$4,591.90 per ounce, staying below the Jan. 14 record high of US$4,635.70 per ounce.

The drop comes after the United States on Thursday backed down from a threat of military intervention in Iran in support of protestors who had taken to the streets in the country amid spiking inflation and a weakening economy. President Donald Trump decided not to strike at the Islamic regime after receiving promises that Iran's government would not execute protestors, while reports said neighboring countries urged Trump to stand down.

Still, geopolitical concerns remain amid enforcement of Trump's foreign policy.

The dollar fell early, with the ICE dollar index last seen down 0.09 points to 99.23. Treasury yields were mostly steady, with the U.S. two-year note last seen paying 3.582%, down 0.7 basis points, while the yield on the 10-year note was up 1.5 points to 4.193%.