Gold Prices Hold Steady Amid Geopolitical Uncertainty
Gold prices remained largely unchanged during European trading on Thursday, following modest gains in the previous session. Investors stayed cautious as renewed tensions in the Middle East threatened the stability of the fragile U.S.-Iran ceasefire.
Spot gold rose 0.2% to $4,730.24 per ounce, while U.S. gold futures for June declined 0.4% to $4,756.09 per ounce.
Ceasefire Concerns Keep Markets on Edge
Gold had previously gained 0.3% on Wednesday, after briefly surging as much as 3% when the announcement of a temporary ceasefire between the U.S. and Iran eased immediate fears of supply disruptions.
The two-week truce, brokered by Pakistan, aims to halt hostilities and reopen the crucial Strait of Hormuz. However, continued Israeli strikes in Lebanon and Iran’s stance that negotiations remain “unreasonable” under current conditions have raised doubts about the ceasefire’s durability.
At the same time, Iran has halted oil tanker traffic through the Strait of Hormuz, while President Donald Trump stated that U.S. military forces will remain deployed in the region until a “real agreement” is secured.
Oil Rebound and Mixed Signals Weigh on Gold
Oil prices rebounded slightly on Thursday after a sharp drop in the previous session, adding complexity to gold’s price movement.
Analysts note that conflicting geopolitical developments are driving volatile trading in gold. Safe-haven demand is being balanced by shifting risk sentiment and movements in the U.S. dollar, resulting in limited overall price direction.
In the near term, gold is expected to remain highly sensitive to headlines, particularly any developments regarding the ceasefire and broader regional tensions.
US CPI Data in Focus for Federal Reserve Outlook
Investors are now turning their attention to the upcoming U.S. consumer price index (CPI) data for March, which is expected to provide further insight into inflation trends and the Federal Reserve’s future interest rate decisions.
Rising oil prices have increased concerns about inflationary pressures, with markets anticipating a noticeable uptick in the data.
Meanwhile, the U.S. dollar stabilized after declining 0.7% in the previous session, limiting further upside in gold prices.
Other Commodities Show Mixed Performance
Among other precious metals, silver remained flat at $74.10 per ounce, while platinum declined 0.5% to $2,021.59 per ounce.
In industrial metals, copper prices also moved lower. Benchmark copper futures on the London Metal Exchange fell 0.6% to $12,625.33 per ton, while U.S. copper futures dropped 1.3% to $5.70 per pound.
