Gold continued its advance in Asian trading on Thursday, as investors reacted to signs of progress in talks between the United States and Iran and sought bargains after heavy losses earlier in the week.
Market moves
By 21:56 ET (01:56 GMT), spot gold had risen 0.4% to $4,560.92 an ounce. Gold futures gained 0.3%, trading at $4,562.50 per ounce. Traders said the lift for bullion reflected both a pullback in bond yields this week and buying interest following the recent selloff.
Key drivers
Market participants attributed much of the metal's momentum to a drop in yields, which eased pressure on non-yielding assets such as gold. The decline in yields coincided with positive commentary on U.S.-Iran negotiations that encouraged bets a conclusion of hostilities could be near.
President Donald Trump said the Iran war was in its "final stages," and had earlier stated that "talks were going well." At the same time, he warned that failure to reach an agreement would invite additional U.S. military action against Iran, a caveat that restrained broader market optimism.
Energy and geopolitics
Geopolitical factors remained relevant to commodity markets. The Strait of Hormuz was described as largely closed, a condition that supported oil prices despite a sharp drop earlier in the week. The persistence of that shipping disruption left some upward pressure on energy markets even as optimism about talks lifted other asset classes.
Other precious metals
Precious metals beyond gold also moved higher on the session, with bargain buying cited as a secondary support following recent declines. Spot platinum rose 0.1% to $1,954.61 per ounce, while spot silver increased 0.6% to $76.2820 per ounce.
Summary and context
Overall, bullion benefited from a combination of easing yields and renewed buying interest amid improved tone on peace negotiations. However, explicit warnings from U.S. leadership about the possibility of renewed military action and the ongoing closure of the Strait of Hormuz kept a degree of caution across markets.