Gold prices held steady on Thursday as investors awaited clearer signals of progress in efforts to ease tensions in the Middle East, remaining cautious ahead of potential geopolitical developments that could influence demand for safe-haven assets.
As of 03:00 GMT, spot gold stood at $4,503.29 per ounce, while U.S. gold futures for April delivery fell 1.2% to $4,500.
Iranian Foreign Minister Abbas Araghchi said on Wednesday that Tehran is reviewing a U.S. proposal to end the war but does not intend to engage in talks to resolve the escalating conflict in the region.
Reports indicated that the United States had sent the 15-point proposal to Tehran earlier this week via Pakistan.
Kyle Rodda, senior financial market analyst at Capital.com, said: “Over the next 24 to 48 hours, gold prices will move in response to news related to negotiations.”
He added: “The real significant moves are likely to occur at the start of next week, when it becomes clearer whether the United States will launch a ground invasion of Iran over the weekend.”
White House spokesperson Karoline Leavitt said on Wednesday that U.S. President Donald Trump had threatened to strike Iran more forcefully if it does not accept what she described as “military defeat.”
Pressure on gold increased as crude oil prices rose above $100 per barrel, prompting investors to reassess the likelihood of easing tensions in the Middle East.
According to CME’s FedWatch tool, markets no longer expect any monetary easing from the Federal Reserve this year. Prior to the outbreak of the conflict, expectations had pointed to at least two U.S. interest rate cuts in 2026.
Among other precious metals, spot silver fell 0.1% to $71.19 per ounce, platinum dropped 0.7% to $1,906.90, and palladium declined 1.4% to $1,404.
Reuters
