Gold prices fall on Thursday

Gold prices fell on Thursday, with spot gold down 1 per cent to $4,476.51 per ounce by 0555 GMT and US futures for April delivery losing 2.1 per cent to $4,457, as investors awaited clearer signals on Middle East de-escalation efforts.

Market sentiment remained driven by conflicting signals on the conflict, as US President Donald Trump indicated Iran was seeking a deal, while Tehran signalled no intention to enter talks despite reviewing a US proposal.

Analysts expect short-term price movements to track headlines on negotiations, with sharper shifts likely next week depending on whether the United States escalates militarily.

Oil prices held above $100 per barrel amid concerns that prolonged fighting could disrupt energy flows, particularly after attacks linked to the conflict and disruptions around the Strait of Hormuz, a key route for global oil and liquefied natural gas shipments.

Elevated crude prices are fuelling inflation pressures, which typically support gold as a hedge, but expectations of sustained high interest rates continue to weigh on the non-yielding asset, with markets now pricing in almost no chance of a Federal Reserve rate cut this year.

Other precious metals also declined, with silver falling 1.9 per cent to $69.90 per ounce, platinum down 1.4 per cent to $1,893.60, and palladium losing 2 per cent to $1,394.83.

Attribution: Reuters