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Gold prices moved higher in Asian trading on Thursday, building on a sharp rally in the previous session, as investors weighed persistent geopolitical tensions against mixed signals from the U.S. Federal Reserve.
Spot gold rose 0.9% to $5,019.95 an ounce by 02:03 ET (07:03 GMT), while U.S. gold futures gained 0.6% to $5,037.75 an ounce. The yellow metal surged 2.1% on Wednesday, recouping most of the losses recorded earlier in the week.
Trading volumes remained thin, with several major Asian markets closed for holidays, a factor that amplified short-term price movements.
Geopolitics Support Safe-Haven Demand
Safe-haven demand for gold stayed firm amid elevated geopolitical risks. Investors continued to monitor heightened tensions between the United States and Iran, including concerns over maritime security in the Strait of Hormuz and the lack of progress in nuclear negotiations.
At the same time, limited advancement in efforts to resolve the Russia–Ukraine conflict added to broader global security concerns, helping sustain inflows into defensive assets such as gold.
Fed Minutes Temper Enthusiasm
However, gains were capped as sentiment turned more cautious following the release of minutes from the Federal Reserve’s latest policy meeting. The minutes highlighted divisions among policymakers over the future path of interest rates.
While some officials signaled that further tightening could still be considered if inflation remains stubborn, others acknowledged that conditions may allow for policy easing later in the year. The possibility that U.S. interest rates could stay higher for longer supported the dollar and Treasury yields, typically a headwind for non-yielding assets like gold.
The U.S. Dollar Index was little changed on Thursday after rising 0.6% overnight in response to the slightly hawkish tone of the Fed minutes.
Investors are now turning their attention to the U.S. personal consumption expenditures (PCE) price index due on Friday—the Federal Reserve’s preferred inflation gauge—for clearer guidance on the future direction of monetary policy.
Silver Advances, Base Metals Mixed
Other metals also traded mostly higher. Silver extended its rally, jumping 2.3% to $78.98 an ounce, while platinum added 0.8% to $2,099.11 an ounce.
In contrast, copper prices showed mixed performance. Benchmark London Metal Exchange copper futures slipped 0.5% to $12,920.20 a metric ton, while U.S. copper futures edged up 0.5% to $5.80 a pound, reflecting divergent demand signals across regions.
