TLDR
- Gold prices maintained stability around $5,183 per ounce during Thursday trading sessions
- Upward price momentum limited by strengthening US dollar and diminishing Federal Reserve rate-cut prospects
- Geopolitical tensions in the Middle East drove Brent crude temporarily beyond $100 per barrel, marking nearly 60% gains year-to-date
- Exchange-traded fund holdings of gold experienced their largest weekly decline in more than 24 months
- Silver prices advanced over 1.6% to reach $87.19; BMI analysts project 2026 average of $93 per ounce
The yellow metal continues to maintain elevated price levels near all-time highs, though upward momentum has stalled following the outbreak of US-Israeli hostilities with Iran that commenced February 28. Market participants are currently weighing geopolitical risk premiums against dollar resilience and diminishing central bank easing expectations.
Spot gold demonstrated minimal movement at $5,183.39 per ounce during Thursday morning trading in New York markets. April-delivery US gold futures contracts climbed 0.2% to settle at $5,190.50. The precious metal has accumulated approximately 20% in gains throughout the current year.
Ongoing military operations across the Middle East region represent the primary source of market volatility at present. Reports emerged Thursday of two tankers catching fire in Iraqi territorial waters, suggesting an intensification of Iranian strikes targeting regional energy facilities.
Brent crude prices temporarily surged past the $100 per barrel threshold during Asian market hours. Petroleum markets have registered nearly 60% appreciation year-to-date. Escalating oil prices generate increased transportation and manufacturing expenses, contributing to wider inflationary pressures across the economy.
Investors traditionally view gold as an effective inflation protection mechanism. However, these identical inflation concerns are simultaneously diminishing market expectations for near-term Federal Reserve rate reductions. Elevated interest rates enhance the attractiveness of income-generating investments relative to non-yielding gold holdings.
The US dollar extended gains for a third consecutive trading session Thursday. Dollar appreciation increases gold’s cost for international buyers utilizing alternative currencies, potentially dampening overall demand.
“Gold has been range bound recently. The higher dollar index, rising treasury yields and lack of interest rate cuts are the negative factors, but the conflict in the Middle East has been generating some safe-haven flows,” said Phillip Streible, chief market strategist at Blue Line Futures.
Gold ETF Holdings Drop
Notwithstanding stable pricing, exchange-traded fund holdings of gold contracted last week at the fastest pace observed in over two years. Market participants have been liquidating gold positions to generate liquidity for covering portfolio losses in other asset classes.
Jeff Currie from Carlyle Group shared with Bloomberg Television his expectation for strengthening gold demand as the conflict situation evolves. He noted that emerging market institutions are preferring gold allocations over US-denominated assets to mitigate risks of foreign reserve seizures, similar to actions taken against Russia during 2022.
Silver and Platinum Also Move Higher
Silver demonstrated stronger performance relative to gold Thursday, advancing 1.6% to reach $87.19 per ounce. The white metal has surged more than 146% throughout 2025.
BMI analysts have published forecasts projecting silver to average $93 per ounce during 2026. Their analysis suggests robust investment appetite will counterbalance reduced consumption from solar manufacturing and jewelry sectors at current elevated price points.
Spot platinum registered a 0.7% increase to $2,184.00. Palladium advanced 1.6% to settle at $1,666.70.
Core US inflation metrics released Thursday revealed moderate price pressures at the year’s beginning. Nevertheless, forward-looking inflation anxiety connected to Middle East hostilities prompted traders to scale back Federal Reserve rate-cut expectations for 2025.
Blue Line Futures’ Streible noted that stabilization or decline in oil prices could relieve pressure on treasury yields and dollar strength, potentially creating conditions for gold futures to advance higher.
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