Gold prices pushed higher during Asian trading on Thursday, extending gains after a more than 2% surge in the previous session, as investors balanced ongoing geopolitical risks against mixed signals from the Federal Reserve.
Spot gold climbed 0.9% to $5,019.95 per ounce as of 02:03 ET (07:03 GMT), while U.S. gold futures rose 0.6% to $5,037.75.
The metal had rallied 2.1% on Wednesday, recovering much of the losses seen earlier in the week.
Trading volumes were thin, with several major Asian markets closed for holidays, which amplified near-term price swings.
Safe-haven flows persist amid global tensions; Fed outlook in focus
Continued geopolitical uncertainty remained a key driver of demand for bullion. Investors monitored rising frictions between the United States and Iran, including concerns about maritime security in the Strait of Hormuz and stalled nuclear negotiations.
Limited progress in Russia-Ukraine peace discussions also kept broader security risks elevated, supporting inflows into traditional safe-haven assets such as gold.
However, optimism was tempered after the release of the Fed’s latest meeting minutes, which revealed differing views among policymakers on the direction of interest rates.
Some officials indicated that further tightening could be warranted if inflation remains persistent, while others suggested that conditions may allow for rate cuts later in the year.
The possibility that U.S. interest rates could stay higher for longer boosted the dollar and Treasury yields, restraining additional upside in gold following its recent rebound.
The U.S. Dollar Index held steady after rising 0.6% overnight in reaction to the Fed’s slightly hawkish tone.
Gold typically loses appeal when interest rates rise, as higher yields increase the opportunity cost of holding a non-interest-bearing asset.
Investors are now awaiting Friday’s release of the U.S. personal consumption expenditures (PCE) price index — the Fed’s preferred inflation gauge — for clearer guidance on the policy outlook.
Broader metals firm; silver outperforms
Other precious and base metals also traded higher on Thursday.
Silver advanced 2.3% to $78.98 per ounce, while platinum gained 0.8% to $2,099.11 per ounce.
In industrial metals, benchmark copper futures on the London Metal Exchange edged down 0.5% to $12,920.20 per metric ton, while U.S. copper futures rose 0.5% to $5.80 per pound.
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