Gold prices saw a recovery on Thursday following a dip to a one-month low the day before, aided by a decline in the U.S. dollar. Nonetheless, consistently high oil prices have kept worries about inflation and the possibility of sustained high interest rates alive. Spot gold rose by 0.6% to $4,566.73 per ounce at 0105, after hitting its lowest level since March 31 in the previous session. U.S. gold futures for June delivery rose by 0.4%, hitting a price of $4,578.50. The U.S. dollar saw a decrease, leading to reduced prices for bullion priced in dollars for those holding different currencies.

Brent crude oil stayed high at $119 a barrel, as stalled U.S.-Iran negotiations increased investor concerns about prolonged disruptions to Middle Eastern supply. Donald Trump held talks about strategies to mitigate the possible impacts of a lengthy U.S. blockade of Iran’s ports with oil companies, as stated by a White House official on Wednesday. The U.S. president urged Tehran to “act wisely soon” and complete an agreement.

The U.S. Federal Reserve kept its interest rates steady, but in a notably divisive decision since 1992, raised concerns about inflation in a policy statement that drew three dissenting opinions from officials who argue that the U.S. central bank should stop signaling a preference for lowering borrowing costs. Kevin Warsh, chosen by Trump to lead the Fed, overcame a major procedural hurdle on Wednesday, setting the stage for his possible succession of Jerome Powell next month.

In the first quarter of 2026, global gold demand saw a year-on-year rise of 2%, totaling 1,230.9 metric tons. The increase was fueled by a remarkable rise in the acquisition of gold bars and coins, coupled with a 3% increase in central bank purchases, which offset a considerable 23% decline in jewellery demand, as stated in the World Gold Council’s report on Wednesday. Spot silver rose by 1% to $72.18 per ounce, platinum increased by 1.7% to $1,911, and palladium saw a 0.9% gain at $1,470.40.