Global gold prices remained largely stable on Thursday as investors adopted a cautious stance amid uncertainty surrounding the fragile ceasefire between United States and Iran, while also awaiting key inflation data that could shape monetary policy decisions.
Spot gold edged up slightly by 0.1 per cent to $4,721.51 per ounce as of early trading hours, reflecting a market caught between geopolitical tensions and economic signals.
Meanwhile, U.S. gold futures for June delivery dipped by 0.7 per cent to $4,744.90.
Market sentiment has been influenced by expectations surrounding upcoming inflation data in the United States, particularly the Personal Consumption Expenditures (PCE) index, a key measure closely monitored by the Federal Reserve.
Investors are also looking ahead to consumer price data, which could offer further direction on interest rate movements.
Minutes from the Federal Reserve’s March policy meeting revealed that several policymakers remain concerned about persistent inflation levels, suggesting that additional rate hikes may still be considered to keep inflation within the central bank’s 2 per cent target.
Analysts say the combination of monetary policy uncertainty and geopolitical instability is keeping gold prices within a narrow range. Managing Director of GoldSilver Central, Brian Lan, noted that the precious metal is likely to trade between $4,607 and $4,860 in the near term.
“It doesn’t seem like gold is looking to do much at this moment. There is still a lot of speculation on what could happen after the ceasefire,” he said.
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Tensions in the Middle East continue to weigh on investor confidence. Renewed hostilities involving Israel and Lebanon, alongside threats of retaliation from Iran, have heightened concerns over energy supply disruptions.
Oil prices rose on Thursday amid fears that production in the region may not fully recover if the ceasefire fails to hold. The uncertainty has contributed to inflationary pressures, which in turn affect gold’s attractiveness as a non-yielding asset.
Since the conflict began on February 28, gold prices have declined by more than 10 per cent, as rising energy costs and shifting interest rate expectations reduced demand for the metal as a safe-haven investment.
However, analysts at Standard Chartered believe gold could regain strength in the coming months, citing ongoing geopolitical risks and market volatility.
Other precious metals showed mixed performance. Spot silver slipped by 0.1 per cent to $74.07 per ounce, platinum declined by 0.4 per cent to $2,020.60, while palladium recorded a modest gain of 0.3 per cent to $1,559.
As global markets remain on edge, investors continue to balance geopolitical developments with economic indicators, leaving gold prices in a state of cautious stability.