Gold Prices Extend Losses in Asian Trading
Gold prices moved lower in Asian trading on Thursday, continuing their recent decline as geopolitical uncertainty and interest rate concerns boosted the U.S. dollar and reduced demand for safe-haven assets.
Spot gold dropped 0.6% to $4,712.50 per ounce, while gold futures declined 0.5% to $4,728.69/oz during early trading hours. Prices briefly fell to $4,694.23 per ounce, breaking below the $4,700–$4,900 range that had held over the past two weeks.
Safe-Haven Demand Shifts Toward the Dollar
The precious metal struggled to gain momentum as investors remained cautious about the outlook for renewed U.S.-Iran negotiations. Despite U.S. President Donald Trump extending a ceasefire indefinitely, both sides showed limited willingness to return to talks.
Iran has insisted that the United States lift its naval blockade before negotiations resume, while Washington is demanding full access through the Strait of Hormuz. With neither side backing down, tensions remain elevated.
This ongoing standoff has supported the U.S. dollar, diverting safe-haven demand away from gold.
Oil Prices Rise as Supply Concerns Persist
Energy markets remain under pressure, with oil prices climbing back above $100 per barrel due to restricted supply flows through the Strait of Hormuz.
The disruption in this key shipping route continues to fuel concerns over global energy availability, adding another layer of uncertainty to financial markets.
Strong Dollar Weighs on Precious Metals
The broader precious metals market also faced selling pressure as the U.S. dollar held near a one-and-a-half-week high.
Silver prices declined by 2% to $76.13 per ounce, while platinum fell 1.4% to $2,050.65 per ounce, reflecting the impact of a stronger dollar environment.
Interest Rate Expectations Add Pressure
Market sentiment was further influenced by comments from Kevin Warsh, who indicated no commitment to cutting interest rates. His stance is viewed as relatively hawkish, reinforcing expectations that borrowing costs may remain elevated.
Investor sentiment also reflects expectations that the Federal Reserve will hold rates steady for at least the next six months, according to a recent survey.
Inflation Risks from Oil Keep Markets on Edge
Rising oil prices are adding to inflation concerns, which in turn are increasing the likelihood of tighter monetary policy from major central banks. Institutions such as the European Central Bank and the Bank of England have already signaled potential hawkish responses if inflation pressures persist.
These dynamics continue to weigh on gold and the broader metals market, as higher interest rates and a stronger dollar reduce the appeal of non-yielding assets.
