Gold prices retreated during Asian trading hours on Thursday, slipping back into the $5,000–$5,200 per ounce range that has dominated markets for over a week. The ongoing conflict involving the U.S., Israel, and Iran continued to redirect investor flows toward oil and the U.S. dollar, weighing on bullion despite persistent geopolitical uncertainty.
Spot gold declined 0.4% to $5,154.46 per ounce, while gold futures dropped a similar margin to $5,159.40 per ounce. Although prices remain historically elevated, momentum has stalled as traders reassess safe-haven priorities amid the evolving military conflict.
Market attention shifted sharply toward crude oil after reports emerged that two international tankers had been struck near Iraq. The spike in oil prices intensified inflation concerns, prompting speculation that central banks could adopt a more hawkish monetary policy stance in the months ahead — a development that historically puts downward pressure on non-yielding assets like gold.
Bullion had briefly climbed above $5,200 per ounce on Wednesday before retreating following the release of U.S. Consumer Price Index data. Although inflation figures came in line with forecasts, investors grew wary of potential energy-driven price increases that could complicate the Federal Reserve's policy outlook.
Other precious metals also pulled back. Spot silver eased 0.2% to $85.56 per ounce, while spot platinum slipped 0.1% to $2,167.26 per ounce, reflecting a broadly cautious tone across commodity markets.
Adding to market volatility, conflicting signals from U.S. officials — including statements from President Donald Trump suggesting the Iran conflict could soon end — clashed with ongoing hostilities on the ground, causing sharp swings in precious metals throughout the week.
With inflation risks, geopolitical tensions, and central bank policy all in focus, gold's near-term direction remains closely tied to developments in the Middle East conflict.


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