Gold Prices Rise as Markets Monitor US-Iran Ceasefire and Await Inflation Data
Gold prices edged higher on Thursday as markets assessed the fragile ceasefire between the United States and Iran, while investors awaited key U.S. inflation data amid persistent price pressures. Spot gold rose 0.3% to $4,728.18 per ounce by 0951 GMT, having reached its highest level since March 19 in the previous session. U.S. gold futures for June delivery declined 0.5% to $4,754.30.
The weaker dollar provided some support to gold prices, according to independent analyst Ross Norman, though he noted that rapidly developing news from the Middle East was making markets difficult to trade from an investment perspective. The dollar held steady after sharp losses in the previous session as traders monitored whether the ceasefire between the U.S. and Iran would hold.
Despite both sides declaring victory in the five-week conflict, significant disputes remain unresolved. U.S. President Donald Trump warned of potential major escalation if Iran refuses to accept a deal, while Israel conducted its largest attack of the war yet, killing more than 250 people in Lebanon.
Oil prices rebounded on concerns about continued restrictions on energy flows through the Strait of Hormuz. Norman suggested that while gold might be eyeing the $5,000 level, such a target remains some distance away, pending developments regarding the Strait's status.
Since the conflict began on February 28, bullion has declined more than 11% as surging oil prices have significantly reduced expectations for U.S. interest rate cuts amid heightened inflation concerns. Minutes from the U.S. Federal Reserve's March meeting revealed that more policymakers believed rate hikes might be necessary to counter inflation that continues to exceed targets.
Investors now await Personal Consumption Expenditures (PCE) data for February, due at 1230 GMT, for additional guidance on the U.S. monetary policy trajectory. Among other precious metals, spot silver fell 0.3% to $73.93 per ounce, platinum declined 0.5% to $2,019.05, and palladium edged up 0.1% to $1,556.91.
