On the COMEX, gold was trading at $4,705.80 per ounce, down $18.20 or 0.39%. Silver also slipped, with COMEX silver at $75.11 per ounce, lower by $0.394 or 0.52%.
Bullion opened largely steady but pared gains as volatility persisted.
Market sentiment remained fragile as concerns grew over stalled US-Iran diplomatic efforts, with tensions continuing to disrupt the Strait of Hormuz, a key global oil transit route. The uncertainty pushed crude oil prices higher, with Brent crude rising to around $106.20 per barrel, reinforcing inflation concerns.
Higher oil prices and firm inflation expectations have strengthened the outlook for a prolonged higher interest rate environment, reducing the appeal of non-yielding assets such as gold and silver. Markets are currently pricing in no rate cuts through 2026.
Asian equities opened lower, with the MSCI Asia Pacific Index slipping 0.1%, while US markets ended mixed overnight. A stronger dollar also added pressure on bullion prices.
Analysts noted that gold and silver have erased earlier gains as geopolitical developments continue to shift rapidly. While ceasefire extensions had briefly supported prices earlier this week, the lack of progress in peace talks has kept markets on edge.
Despite the near-term volatility, experts maintain that gold’s broader fundamentals remain intact, supported by its role as a hedge against uncertainty. Silver, however, continues to see relatively weaker investment demand, with industrial usage offering limited support.
Going ahead, traders are expected to track macroeconomic data, including US jobless claims and PMI readings, along with developments in the US-Iran situation, which are likely to remain the key driver for bullion prices in the near term.
–With agencies inputs
