LONDON: Gold prices slid on Thursday,retreating further from a near 7-year peak scaled in the previous session as tensions between the US and Iran eased following conflict over the US killing of an Iranian general.

Spot gold fell 0.2 per cent to $1,552.74 per ounce by 1250 GMT, having earlier slipped to $1,539.78 an ounce. US gold futures fell 0.4pc to $1,553.70 per ounce. Gold had risen as much as 2.4pc early on We dnesday to break above the key $1,600 level after Iran`s retaliatory attacks on military bases housing US troops in Iraq.

US President Donald Trump responded to the missile attacks withsanctions rather than military action, while Iranian officials said the missile attack concluded their response, easing fears of wider conflict in the Middle East and prompting a sell-off in safe haven assets like gold.

`Since Iran and US will not escalate the recent issue out of proportion, we are seeing a little retracement after gold broke a key technical level of $1,550,` said Bernard Sin, group head of trading at MKS.

Silver fell 0.6 pc to $17.97 per ounce, after hitting its highest since September at $18.85 on Wednesday, while platinum rose 0.8 to $960.98 per ounce.-Reuters