Gold prices were largely unchanged in Asian trading on Thursday after marginal gains in the previous session, as investors watched renewed Middle East tensions, which could jeopardize a fragile U.S.-Iran ceasefire.
Spot gold was muted at $4,720.68 an ounce by 02:30 ET (06:30 GMT), while U.S. Gold Futures for June fell 0.7% to $4,743.00/oz.
Bullion settled 0.3% higher on Wednesday after rising as high as 3% as a temporary ceasefire between the U.S. and Iran eased immediate supply shock fears but failed to fully calm markets.
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Middle East fighting continues despite Trump’s 2-week ceasefire The ceasefire, brokered by Pakistan, is a two-week truce aimed at halting hostilities and reopening the critical Strait of Hormuz.
Market sentiment stayed cautious as Israeli strikes on Lebanon continued, raising doubts about the durability of the truce. Iran said peace talks with the U.S. would be “unreasonable” under current conditions.
Iran halted oil tanker traffic through the Strait of Hormuz, while President Donald Trump said that the U.S. military would remain around Iran until a "real agreement" is reached
Oil prices rebounded modestly on Thursday after tumbling sharply on the ceasefire announcement in the prior session.
"Conflicting geopolitical signals are driving choppy price action in gold, with safe‑haven demand offset by shifts in risk sentiment and dollar moves," ING analysts said in a note.
"Looking ahead, gold is likely to remain headline‑driven in the near term, with further clarity on the durability and scope of the ceasefire key for determining whether prices can regain upside momentum," they added.
Traders await US CPI data for Fed rate cues Gold, traditionally seen as a safe-haven asset, has been pressured by a spike in oil, which has stoked global inflation fears.
Investors are closely watching the U.S. March consumer price index (CPI) data due on Friday, which is expected to provide further clarity on the inflation outlook and the Federal Reserve’s policy path.
Markets are bracing for a notable uptick with energy-driven price pressures from the recent oil shock still filtering through the economy.
Meanwhile, the U.S. dollar steadied after dropping 0.7% in the previous session, capping further gains in bullion.
Among other precious metals, silver prices edged down 0.3% to $73.89 per ounce, while platinum slipped 1% to $2,011.14/oz.
Benchmark Copper Futures on the London Metal Exchange fell 0.6% to $12,625.33 a ton, while U.S.Copper Futures declined 0.5% to $5.72 a pound.
