Key Takeaways

• Gold edges down: Spot gold fell 0.2% to $4,536.09 per ounce, while gold futures dropped 0.5% to $4,536.01.
• “Final stages”: Trump said the U.S. is in the final stages of a potential draft peace agreement with Iran.
• Nasty warning remains: The president cautioned of “a little bit nasty” action if no deal is reached.
• Iran reviewing: Tehran confirmed it is examining Washington’s latest position on ending the conflict.
• Hormuz opening hints: Shipping data suggests some vessels have traversed the strait in recent days.
• Oil drops from $110: Brent crude fell to $103.97 per barrel after Trump’s comments, though still well above the pre-war $70 level.
• Inflation fears weigh: Energy-driven inflation risks could force central banks to hike rates — a key headwind for non-yielding gold.
• Dollar competes: The greenback’s safe-haven status and U.S. energy exporter advantage continue to sap gold’s appeal.
• Stronger dollar hurts: A firmer greenback makes gold more expensive for overseas buyers.
• Platinum falls: Spot platinum declined 0.3% to $1,949.70 per ounce.
• Silver slips: Spot silver fell 0.6% to $75.4065 per ounce.

Gold prices edged lower on Thursday as investors weighed a steady dollar and elevated government bond yields against hopes for an imminent resolution to the Iran war.

By 05:33 ET (09:33 GMT), spot gold had fallen 0.2% to $4,536.09 an ounce, while gold futures were down 0.5% at $4,536.01 an ounce.

Iran “Final Stages” Dampens Safe-Haven Demand

Optimism has been swirling around a possible deal to end the more than two-month war between the United States and Iran. President Donald Trump said the U.S. was in the “final stages” of a potential draft peace agreement, although he raised the specter of re-escalation, warning that “we’re going to do some things that are a little bit nasty” should a deal not be reached.

Iran, for its part, said it is reviewing Washington’s most recent position on concluding the conflict.

Investors are particularly watching for any indications that a deal could reopen the Strait of Hormuz — a vital waterway off Iran’s southern coast that has been all but closed to tanker traffic since the start of the war in late February. Shipping data in media reports earlier this week indicated that some vessels have been able to traverse the conduit in recent days.

Brent crude futures, the global oil benchmark, were last trading lower at $103.97 a barrel, after having dropped from around $110 a barrel in the wake of Trump’s comments. Still, the contract remains well above pre-war levels of $70 a barrel.

Inflation and Rate Fears Keep Pressure On

Worries have abounded that a prolonged conflict in the Middle East could spur an energy-fueled inflation wave around the world — which may in turn force global central banks to consider interest rate hikes.

Non-yielding assets like gold tend to underperform in elevated rate environments.

Meanwhile, a shift into the U.S. dollar as a safe-haven asset during the crisis has further dimmed gold’s appeal. Some investors have viewed the greenback favorably, buoyed by the belief that the United States — as a major energy exporter — could be relatively insulated from the oil price spike. A stronger dollar can also make gold more expensive for overseas buyers.

Other precious metals also fell, cutting short a limited recovery this week. Spot platinum declined 0.3% to $1,949.70 per ounce, while spot silver fell 0.6% to $75.4065 per ounce.