Gold prices held steady on Thursday, as investors took a careful approach while waiting for clearer indications about the U.S.-Iran ceasefire talks, and in expectation of significant U.S. inflation data set to be unveiled later in the day. Spot gold held steady at $4,715.42 per ounce as of 0052. Gold futures in the U.S. for June delivery fell by 0.8%, closing at $4,739.20. Israel intensified its military operations in Lebanon on Wednesday, delivering its most substantial strikes to date, leading to the deaths of hundreds. This situation led to a warning from Iran about potential retaliation, suggesting that it would be “unreasonable” to keep pursuing talks for a lasting peace agreement with the United States.
The remarks from Iran’s lead negotiator and parliament speaker, Mohammed Bager Qalibaf, underscored the persistent instability in the region, despite a ceasefire announcement made by U.S. President Donald Trump on Tuesday. Spot gold has seen a drop of more than 10% since the beginning of the U.S.-Israeli conflict concerning Iran on February 28, influenced by increasing energy prices that have heightened inflation concerns and caused investors to adjust their expectations for rate cuts.
Minutes from the Federal Reserve’s March 17-18 meeting revealed a growing agreement among policymakers that raising interest rates might be essential to manage inflation, which continues to exceed the central bank’s 2% target, particularly in light of the effects of the Iran war. Investors are currently looking forward to the release of the Personal Consumption Expenditures data for February, along with the weekly jobless claims data expected later today, as they seek further insights into the Federal Reserve’s policy trajectory.
“Beyond immediate liquidity requirements, we anticipate that gold will continue to recover its value in the upcoming months due to increased geopolitical tensions,” Standard Chartered remarked on Wednesday. Among other metals, spot silver decreased by 0.4% to $73.83 per ounce, platinum declined by 0.2% to $2,025.75, while palladium increased by 0.3% to $1,559.29.