Gold Held, Middle East Uncertainty Weighs on Sentiment
Gold prices were limited in European trading Thursday after a slight gain in the previous session, as investors monitored the renewed escalation in Middle East tensions, potentially challenging the two-week US-Iran ceasefire. Spot gold rose 0.2% to US$4,730.24/oz at 5:30 a.m. ET, while US June gold futures fell 0.4% to US$4,756.09/oz.
On Wednesday, gold closed up 0.3% after briefly gaining around 3% following the announcement of a Pakistan-mediated pause in the conflict. However, sentiment remained fragile as Israeli attacks in Lebanon continued, while Iran called peace talks with the US “nonsensical” under current conditions. Iran also halted tanker traffic through the Strait of Hormuz, and President Donald Trump said the US military would remain around Iran until a “real agreement” was reached.
Oil fell sharply after the ceasefire announcement, but Thursday’s modest rebound confirmed that the market still believes supply and inflation risks have not completely disappeared. This energy inflation channel remains crucial for gold: rising oil tends to prolong inflation concerns and limit room for policy easing, while geopolitical uncertainty typically supports hedging demand.
Focus next shifts to Friday's US March CPI release to gauge how much the energy shock is starting to trickle down to inflation, and its implications for the Fed's policy path. A steady US dollar after a 0.7% decline in the previous session also limited further gold gains.
In other metals, spot silver was relatively flat at US$74.10/oz, while platinum fell 0.5% to US$2,021.59/oz.
Source: Newsmaker.id
