Khaberni - Gold prices stabilized on Thursday, as investors awaited clearer signs of progress in efforts to resolve the conflict in the Middle East, and exercised caution in anticipation of new geopolitical developments that could impact the demand for safe-haven assets.
By 03:00 GMT, the spot price of gold reached $4503.29 per ounce. U.S. futures for gold delivery in April lost 1.2% to reach $4500.
Iranian Foreign Minister Abbas Araghchi said on Wednesday that his country is considering the American proposal to stop the war but is not planning to hold talks to end the escalating conflict in the Middle East.
Reports mentioned that the United States sent a 15-point proposal to Tehran earlier this week through Pakistan.
Kyle Rodda, chief financial markets analyst at Capital.com said, "Over the next 24 to 48 hours, (gold prices) will move according to news related to the negotiations."
He added, "Significant movements are likely to actually occur at the beginning of next week when it becomes clear whether the United States will launch a ground invasion of Iran at the start of the week."
Caroline Levitt, a spokesperson for the White House, stated on Wednesday that U.S. President Donald Trump has vowed to strike Iran harder if it does not accept "military defeat."
Pressure on gold increased as crude oil prices exceeded $100 per barrel, as investors reassessed the prospects for calming tensions in the Middle East.
According to CME's FedWatch tool, markets no longer expect any monetary easing from the Federal Reserve this year. Before the conflict erupted, market expectations had indicated at least two cuts to U.S. interest rates this year.
As for other precious metals, the spot price of silver fell 0.1% to $71.19 per ounce. Platinum in spot transactions lost 0.7% to $1906.90, and palladium fell 1.4% to $1404.
