Gold showed a modest rebound in Asian trading on Thursday, clawing back some losses from the prior session but still sitting well below key psychological levels as markets wrestled with mixed signals on interest rates and inflation tied to the U.S.-Israel war on Iran.
By 22:13 ET (02:13 GMT), spot gold had risen 0.6% to $4,847.85/oz, while gold futures were down nearly 1% at $4,849.50/oz. The price action reflected a tug-of-war between traditional safe-haven demand and rising expectations for prolonged U.S. interest-rate firmness after fresh inflation data and Fed commentary.
On Wednesday, stronger-than-expected U.S. producer price index inflation for February and the Federal Reserve's outlook for higher inflation combined to exert downward pressure on gold, dragging it below the sought-after $5,000 an ounce mark and taking it to a more-than one-month low. The Fed left interest rates unchanged that day but signaled uncertainty over the inflationary impact of the Iran war, creating ambiguity about the path of U.S. policy.
Market pricing reinforced that ambiguity. CME FedWatch showed markets were pricing in no rate cuts until at least September, a stance that acted as a headwind for bullion and offset part of the conflict-driven safe-haven bid. Since the onset of the Iran war, the yellow metal has struggled to make sustainable gains and on Wednesday slipped below a trading range of $5,000-$5,200/oz that had held for nearly a month.
Other precious metals registered modest moves on Thursday but remained in recovery mode after recent losses. Spot platinum ticked up 0.2% to $2,029.96/oz, while spot silver gained 0.9% to $76.0155/oz.
The current picture leaves gold sensitive to further inflation data and central bank commentary, as well as to developments related to the Iran conflict. For now, prices have regained some ground but remain constrained below levels that market participants had watched closely over recent weeks.
Market context
- Spot gold: up 0.6% to $4,847.85/oz by 22:13 ET (02:13 GMT).
- Gold futures: down nearly 1% to $4,849.50/oz.
- Spot platinum: up 0.2% to $2,029.96/oz; spot silver: up 0.9% to $76.0155/oz.