Gold steady as markets assess Mideast ceasefire talks
- Spot gold was steady at $4,503.29 per ounce
- US gold futures for April delivery lost 1.2% to $4,500
Gold prices held steady on Thursday, as investors awaited clearer signs of progress in Middle East de-escalation efforts and stayed cautious ahead of fresh geopolitical developments that could shape safe-haven demand.
Spot gold was steady at $4,503.29 per ounce as of 0300 GMT.
US gold futures for April delivery lost 1.2% to $4,500.
Iran said it is reviewing a US proposal to end the war, but added it has no intentions of holding talks to end the widening conflict, the country’s foreign minister said on Wednesday.
Dollar strengthens as confidence recovers, Fed hike bets trimmed
The US had sent a 15-point ceasefire proposal to Tehran earlier this week, reportedly via Pakistan.
“The really big moves will happen probably at the start of next week when it becomes clearer whether the US launches a ground invasion in Iran over the weekend…”
US President Donald Trump vowed to hit Iran harder if Tehran failed to accept that the country has been “defeated militarily”, White House press secretary Karoline Leavitt said on Wednesday.
Pressuring bullion, crude oil climbed above $100 a barrel as investors re-examined prospects for de-escalation in the Middle East.
Since the start of the US-Israeli attacks on Iran, Tehran has attacked nations that host US bases and effectively closed the Strait of Hormuz, which handles a fifth of the world’s oil and liquefied natural gas.
Higher crude prices tend to fuel inflation by pushing up transport and manufacturing costs.
Dollar strengthens as confidence recovers, Fed hike bets trimmed
Although rising inflation typically boosts gold’s appeal as a hedge, high interest rates weigh on demand for the non-yielding asset.
Markets are no longer pricing in any easing from the Federal Reserve this year, according to CME Group’s FedWatch Tool.
Before the conflict began, market expectations pointed to at least two rate cuts this year.
Spot silver fell 0.1% to $71.19 per ounce.
Spot platinum lost 0.7% to $1,906.90, while palladium fell 1.4% to $1,404.
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