Gold prices were largely steady in Asian trading on Thursday as investors weighed conflicting signals about the Iranian conflict, with Tehran backing away from a U.S. proposal to end the war.
Spot gold rose 0.1% to $4,509.06 per ounce by 6:57 AM (Saudi Arabia time). US gold futures fell 1.1% to $4,536.10.
The precious metal recovered earlier this week, rising again above $4,500.00 an ounce after a sharp correction, supported by a weaker dollar and initial optimism about diplomatic efforts between the United States and Iran.
However, gains remained limited as uncertainty surrounding the conflict persisted. Iran is still reviewing a US proposal aimed at ending hostilities, with mixed signals about whether negotiations will progress, keeping investors cautious.
While Iran has not officially accepted the plan, it has not explicitly rejected it, raising cautious hopes for a possible path toward de-escalation.
Iran publicly denied holding direct negotiations with Washington and indicated that major disagreements persisted. The uncertainty kept traders on edge, with oil markets quiet on Thursday.
Washington warned of stronger measures if Iran does not cooperate constructively.
Gold, typically seen as a safe haven during geopolitical turmoil, has exhibited unusually volatile behavior in recent weeks. Prices fell sharply earlier this month despite escalating tensions, driven by expectations that interest rates will remain high for longer and the strength of the US dollar.
Meanwhile, oil price volatility also played a role in shaping sentiment. The rise in crude oil prices fueled inflation fears, putting pressure on central banks to maintain higher interest rates, which in turn weighed on non-yielding assets like gold.
The wider financial markets also reflected caution, as investors awaited a clearer direction on geopolitical developments and global monetary policy.
Among other precious metals, silver prices rose 0.1% to $71.32 an ounce, while platinum fell 0.6% to $1,918.60 an ounce.
