Key Takeaways

• Gold falls: Spot gold dropped 0.4% to $4,438.92 per ounce, while gold futures eased 0.3% to $4,467.57.
• Range-bound for 10 days: Spot prices have been trapped between $4,400 and $4,600 per ounce since mid-May.
• Silver and platinum retreat: Spot silver fell 0.9% to $73.9595/oz, while spot platinum dropped 0.7% to $1,915.88/oz.
• Second U.S. strikes this week: The U.S. attacked Iranian targets again Thursday, further testing the tenuous ceasefire.
• “Defensive” framing: U.S. officials maintained the ceasefire remains in place and described the attacks as defensive.
• Oil jumps 2%: Crude recouped some losses, reinforcing inflation fears and boosting the dollar.
• Trump dismisses Hormuz deal: The president rejected the 30-day reopening framework and the Iran-Oman joint control proposal.
• Hormuz trickle continues: Oil tanker flows through the strait remain far below pre-war levels.
• Dollar firms: The DXY rose 0.31%, further pressuring bullion.
• Rate hike fears persist: Iran war inflation concerns have markets betting on Fed holds or even hikes this year.
• PCE data on deck: The Fed’s preferred inflation gauge is due Thursday and could cement rate expectations.
• Gold struggles in high-rate environment: Elevated borrowing costs continue to be gold’s primary headwind.

Gold prices fell during Asian trading on Thursday after a fresh round of U.S. attacks on Iran boosted oil prices and the dollar.

Bullion remained squarely in a trading range established over the past 10 days, pressured by resilience in the dollar and Treasury yields as markets feared the inflationary impact of a prolonged U.S.-Iran conflict.

Spot gold fell 0.4% to $4,438.92 an ounce by 21:16 ET (01:16 GMT), while gold futures fell 0.3% to $4,467.57 per ounce. Spot prices have traded between $4,400 and $4,600 per ounce since mid-May.

Other precious metals also retreated. Spot silver fell 0.9% to $73.9595 per ounce, while spot platinum fell 0.7% to $1,915.88 per ounce.

Iran Strikes Resume, Oil Rebounds

Concerns over Iran remained at the fore after reports said the U.S. had struck targets in the country earlier on Thursday — the second such move by the U.S. this week, further testing an already tenuous ceasefire with Iran.

Reports citing U.S. officials, however, said that the ceasefire remained in place and that the U.S. attacks were “defensive” in nature. Oil prices jumped as much as 2% on Thursday, recouping some losses from earlier this week.

U.S. President Donald Trump on Wednesday largely dismissed recent reports on a framework deal to reopen the Strait of Hormuz in 30 days. Trump also rejected the notion of Iran and Oman jointly controlling passage through the strait.

The waterway remained a key point of focus. While reports showed a steady trickle of oil tankers through Hormuz, flows still remained at a fraction of their pre-war levels.

PCE Data Could Cement Rate Expectations

Beyond the war, focus on Thursday is squarely on U.S. PCE price index data for April — the Federal Reserve’s preferred inflation gauge — which is likely to factor heavily into expectations for interest rates.

Concerns over the inflationary impact of the Iran war have spurred bets that the Fed will either leave rates unchanged or even hike them later in the year. This notion has been a major weight on gold, which performs poorly in high-rate environments.