Investors tread carefully amid geopolitical uncertainty and signals of possible rate hikes from the Federal Reserve…..
Gold prices showed little movement on Thursday as investors adopted a cautious stance, balancing optimism over a fragile ceasefire between the United States and Iran with concerns about upcoming economic data.
Spot gold edged up slightly by 0.1% to $4,721.51 per ounce as of early trading, while U.S. gold futures for June delivery slipped 0.7% to $4,744.90.
Market attention is now firmly on key U.S. inflation figures expected later in the day, which could offer fresh insight into the next moves by the Federal Reserve. Investors are also awaiting additional data later in the week that may further clarify the central bank’s interest rate trajectory.
Minutes from the Fed’s March 17–18 meeting revealed growing concern among policymakers that further rate hikes may be necessary, as inflation continues to run above the bank’s 2% target.
The upcoming Personal Consumption Expenditures (PCE) data, along with consumer price figures due Friday, are expected to play a crucial role in shaping expectations around monetary policy.
Brian Lan, Managing Director at GoldSilver Central, noted that gold may remain range-bound in the near term, projecting prices to fluctuate between $4,607 and $4,860.
“It doesn’t appear that gold is preparing for a major move just yet,” he said, pointing to ongoing speculation about what could follow the temporary ceasefire.
Geopolitical tensions remain a key factor. On Wednesday, Israel launched its most intense strikes yet on Lebanon, resulting in significant casualties and prompting threats of retaliation from Iran. The escalation has kept investors on edge, even as diplomatic efforts attempt to hold the ceasefire together.
Meanwhile, oil prices climbed on concerns that supply from the Middle East may not fully recover, reflecting skepticism over the durability of the two-week truce.
Despite its traditional role as a safe-haven asset, gold has dropped more than 10% since the conflict began on February 28. Rising energy costs have fueled inflation fears, leading markets to reassess interest rate expectations and reducing the appeal of non-yielding assets like gold.
Still, analysts at Standard Chartered believe the metal could regain strength in the months ahead, supported by persistent geopolitical risks.
In other precious metals, spot silver dipped 0.1% to $74.07 per ounce, platinum declined 0.4% to $2,020.60, while palladium posted a modest 0.3% gain to $1,559.
As markets navigate a mix of economic signals and geopolitical uncertainty, gold appears to be in a holding pattern at least for now.
