Gold Stabilizes Amid Mixed Signals of US-Iran Tensions Easing

Investing.com - During Thursday’s Asian trading session, gold prices remained largely steady as investors weighed conflicting signals from the Iran conflict, while Tehran was reviewing the U.S. proposal to end the war.

As of 10:57 p.m. Eastern Time (2:57 a.m. Beijing Time), spot gold rose 0.1% to $4,509.06 per ounce. U.S. gold futures fell 1.1% to $4,536.10.

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Earlier this week, gold prices rebounded, climbing back above $4,500 per ounce after a significant correction, supported by a softer dollar and cautious optimism surrounding U.S.-Iran diplomatic efforts.

However, gains are limited due to ongoing uncertainty about the conflict. Iran is still considering the U.S. proposal aimed at ending hostilities, with mixed signals about whether negotiations will make progress, keeping investors cautious.

Although Iran has not officially accepted the plan, it has not outright rejected it either, sparking cautious hope for a possible easing of tensions.

Iran publicly denies direct negotiations with Washington, stating key differences remain. The lack of clarity keeps traders on edge, with the oil market performing poorly on Thursday.

Washington warns that if Iran does not engage constructively, stronger measures will be taken.

Gold is typically seen as a hedge during geopolitical turmoil, but recent weeks have seen unusual volatility. Despite escalating tensions, gold prices fell sharply earlier this month due to market expectations that interest rates will stay high for longer and a strengthening dollar.

Meanwhile, oil price fluctuations are also affecting market sentiment. A surge in crude prices has heightened inflation concerns, putting pressure on central banks to maintain high interest rates, which in turn weighs on non-yielding assets like gold.

Broader financial markets also reflect caution, as investors await clearer developments in geopolitics and global monetary policy.

In other precious metals, silver rose 0.1% to $71.32 per ounce, while platinum declined 0.6% to $1,918.60 per ounce.

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