Gold prices declined during Asian trading on Thursday, falling back into the range that has held for more than a week as the ongoing conflict involving the U.S., Israel and Iran continued to boost both crude oil prices and the U.S. dollar.
Even so, bullion remained broadly supported within the $5,000 to $5,200 per ounce band, as geopolitical tensions continued to sustain some demand for safe-haven assets.
Spot gold dropped 0.6% to $5,147.05 per ounce by 01:33 ET (05:33 GMT), while gold futures slipped 0.5% to $5,151.86 per ounce.
Gold pressured as Iran tensions lift inflation risks and the dollar
Gold weakened as the continued confrontation between the U.S., Israel and Iran kept investors focused on the strengthening dollar and rising oil prices.
The dollar index gained 0.2% in Asian trading, remaining close to a two-month high.
Crude prices jumped sharply on Thursday, briefly climbing above $100 per barrel after reports that two international oil tankers had been struck near Iraq. Additional reports indicated that Oman was evacuating a major oil export terminal, while Iran was believed to be blocking the Strait of Hormuz, a critical shipping route responsible for roughly one-fifth of global oil supply.
The surge in oil prices heightened concerns that inflation could accelerate over the longer term. That in turn increased expectations that central banks could adopt a more hawkish stance in the coming months — an environment that tends to weigh on gold.
Other precious metals also edged lower on Thursday. Spot silver declined 0.2% to $85.5635 per ounce, while spot platinum slipped 0.1% to $2,167.26 per ounce.
Uncertain developments surrounding the Iran conflict have also driven volatile swings in metal markets this week. U.S. President Donald Trump and other officials have repeatedly suggested that the war with Iran may be nearing its conclusion, even as fighting between the U.S., Israel and Iran continues.
February CPI offers limited signals; focus shifts to PCE data
Gold briefly moved above $5,200 per ounce on Wednesday before falling back below that level following the release of U.S. consumer price index data.
Although February’s CPI reading matched market expectations, it did little to ease worries about a potential rise in inflation driven by higher energy prices.
Market attention is now turning to January’s PCE price index data, scheduled for release on Friday, which could provide clearer signals on inflation trends.
The PCE index is the Federal Reserve’s preferred gauge of inflation and is expected to play an important role in shaping longer-term expectations for price growth.
While the upcoming data is unlikely to reflect the immediate impact of the oil price surge tied to the Iran conflict, it is expected to offer further insight into the condition of the U.S. economy during the first month of 2026.
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