Gold prices were largely steady on Thursday as investors remained cautious about the fragile U.S.-Iran ceasefire.
Spot gold inched 0.1% higher to $4,721.51 per ounce, as of 0523 GMT. U.S. gold futures for June delivery fell 0.7% to $4,744.90.
Investors were also mindful of a key U.S. inflation report due later in the day, also in focus for interest rate clues.
Minutes from the Federal Reserve’s March 17 to 18 meeting showed that more policymakers felt rate hikes could be needed to counter inflation that continued to exceed the central bank’s 2% target.
U.S. Personal Consumption Expenditures data for February is due at 1230 GMT, and March consumer price data on Friday could give further clues on the Fed’s policy path.
GoldSilver Central Managing Director, Brian Lan, told Reuters in a note he expected gold to consolidate between $4,607 and $4,860 in the near term.
“It doesn’t seem like gold is looking to do much at this moment. I think there’s still a lot of speculation on what’s going to happen after the ceasefire,” he said.
On Wednesday, Israel pounded Lebanon with its heaviest strikes yet, killing hundreds of people and drawing a threat of retaliation from Iran.
Oil prices rose on Thursday on concerns that supply from the key Middle East producing region may not fully resume amid doubts that the two-week ceasefire will hold.
Spot gold has declined more than 10% since the war began on February 28, as higher energy prices fuelled inflation concerns and prompted markets to reassess interest rate expectations, reducing the non-yielding bullion’s appeal.
“Beyond near-term liquidity needs, we expect gold to continue to rebuild its gains in the coming months amid heightened geopolitical risk,” Standard Chartered said in a note on Wednesday.
Among other metals, spot silver fell 0.1% to $74.07 per ounce, platinum lost 0.4% to $2,020.60, and palladium edged up 0.3% to $1,559.