Gold prices remained largely stable on Thursday as investors adopted a cautious stance amid uncertainty surrounding the fragile ceasefire between the United States and Iran, while also turning their attention to crucial U.S. inflation data expected later in the day.
Spot gold edged up by 0.1 percent to $4,721.51 per ounce as of 0523 GMT, reflecting a market that remains on edge over geopolitical developments and the future direction of U.S. monetary policy. Meanwhile, U.S. gold futures for June delivery slipped by 0.7 percent to $4,744.90.
Market participants are closely monitoring the latest U.S. Personal Consumption Expenditures (PCE) data for February, scheduled for release at 1230 GMT, as well as consumer price index figures expected on Friday. These reports are expected to provide further clarity on the Federal Reserve’s next move regarding interest rates.
Minutes from the Federal Reserve’s March 17 to 18 meeting revealed that an increasing number of policymakers believe further rate hikes may be necessary to tackle persistent inflation, which continues to remain above the central bank’s 2 percent target.
The possibility of higher interest rates has kept bullion investors cautious, as rising rates typically reduce the attractiveness of non-yielding assets such as gold.
Analysts say gold may remain range-bound in the near term as the market digests the evolving geopolitical situation in the Middle East.
GoldSilver Central Managing Director Brian Lan noted that the precious metal is likely to consolidate between $4,607 and $4,860 in the short term, adding that uncertainty over the ceasefire remains a major factor influencing investor sentiment.
According to him, the market is still highly speculative, with investors waiting to see whether the temporary truce will hold or collapse in the coming days.
Tensions in the region remain elevated after Israel launched what has been described as its heaviest strikes yet on Lebanon on Wednesday, resulting in hundreds of deaths and drawing threats of retaliation from Iran.
The development has also pushed oil prices higher, as concerns persist over whether crude supply from the key Middle East producing region will fully resume. The market remains skeptical about the durability of the two-week ceasefire agreement.
Since the conflict began on February 28, spot gold has fallen by more than 10 percent. The decline has been largely driven by surging energy prices, which have heightened inflation concerns and forced investors to reassess expectations for interest rate cuts.
Despite the recent pullback, analysts believe gold could regain momentum in the coming months, supported by lingering geopolitical risks and global economic uncertainty.
In the broader metals market, spot silver dipped 0.1 percent to $74.07 per ounce, platinum fell 0.4 percent to $2,020.60, while palladium recorded a modest gain of 0.3 percent to $1,559 per ounce.
Gold Holds Firm as Investors Watch Fragile U.S.-Iran Ceasefire, Inflation Data
