Gold prices fell in Asian trade on Thursday, extending recent losses and briefly breaking below a recent trading range as uncertainty over the Iran war and U.S. interest rates supported the dollar and curbed demand for bullion.
Spot gold fell 0.6% to $4,712.50 an ounce, while gold futures fell 0.5% to $4,728.69/oz by 02:30 ET (06:30 GMT). Spot prices briefly fell as low as $4,694.23/oz, breaking below a $4,700-$4,900/oz trading range seen over the past two weeks.
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Gold struggles as haven buyers favor dollar The yellow metal struggled to make headway as markets remained largely uncertain over the status of more U.S.-Iran talks, after President Donald Trump indefinitely extended a ceasefire.
Tehran and Washington signaled little openness to fresh negotiations after planned talks largely fell through this week. Iran said the U.S. must lift a blockade against the country before any negotiations can take place, while Washington demanded a full reopening of the Strait of Hormuz.
But Iran continued to block Hormuz, while the U.S. maintained a naval blockade against Iran and also policed Iranian ships in broader Asia, leaving both countries at an impasse.
Oil prices surged back above $100 a barrel this week, as supply through Hormuz remained largely scant.
Rate fears keep precious metals under pressure Broader metal markets were also pressured by strength in the dollar, which steadied at a near 1-½ week high on Thursday.
Spot silver fell 2% to $76.1295/oz, while spot platinum fell 1.4% to $2,050.65/oz.
The greenback firmed after Trump’s nominee for the Federal Reserve Chair, Kevin Warsh, said he had made no commitments to cut interest rates, as demanded by the president. Warsh is viewed as a less dovish pick, with his nomination in late-January sparking deep losses in gold and precious metal prices.
Separately, a Reuters poll found investors expect no rate cuts from the Fed for at least six months, amid uncertainty over the Iran war.
The conflict’s inflationary impact-- through higher oil prices-- has been a key point of pressure on gold and metal markets. Traders feared that energy-fueled inflation will elicit more hawkish stances from major global central banks, with the European Central Bank and the Bank of England already warning of such a scenario.
