Gold Prices Slip as Dollar Strength and Oil Surge Weigh
Gold prices moved lower on Thursday, pressured by a stronger United States dollar and rising oil prices. The ongoing standoff between the U.S. and Iran has fueled concerns about an energy-driven inflation spike, weighing on sentiment toward the precious metal.
Spot gold declined 0.2% to $4,730.15 per ounce, while gold futures fell 0.1% to $4,747.16 per ounce during mid-session trading.
Market Uncertainty Limits Gold’s Upside
Gold struggled to gain momentum as uncertainty persisted around potential U.S.-Iran negotiations. Although Donald Trump recently extended a ceasefire, both sides have shown little willingness to resume meaningful talks.
Iran has insisted that U.S. sanctions and blockades be lifted before negotiations can proceed, while Washington has called for the full reopening of the Strait of Hormuz. The ongoing stalemate continues to cloud the geopolitical outlook.
Oil Prices Surge, Raising Inflation Concerns
Oil prices climbed above $103 per barrel this week, reflecting fears of supply disruptions in the Strait of Hormuz, a critical passage that handles roughly 20% of global oil flows.
The surge in energy prices has reignited concerns about inflationary pressures, which could prompt central banks to maintain or increase interest rates. In such environments, non-yielding assets like gold typically face downward pressure.
Stronger Dollar Adds to Gold’s Weakness
The U.S. dollar has also contributed to gold’s decline, making the metal more expensive for international buyers. The greenback is currently on track for its first weekly gain in a month, supported by safe-haven demand amid geopolitical uncertainty.
Mixed Market Sentiment and Investor Positioning
According to Jake Behan of Direxion, markets are currently balancing two opposing forces. On one hand, some investors are shifting focus toward corporate earnings and AI-driven growth opportunities, encouraging a move back into risk assets.
On the other hand, geopolitical risks tied to the Iran conflict remain significant, keeping uncertainty elevated.
Other Precious Metals Also Decline
Beyond gold, other precious metals also experienced losses. Spot silver dropped 4.3% to $74.37 per ounce, while platinum declined 3.5% to $2,005.92 per ounce, reflecting broader weakness across the sector.
