The yellow metal is trading at a high level in the $4,800 area due to ongoing tensions in the Middle East and rising oil prices. Market players are closely monitoring geopolitical developments and the latest economic indicators to assess the next price direction.
At 9.10 am, gold prices were at $4,831, up about 0.85% since it opened in early trading Thursday in the Asian session.
A Bloomberg report on Wednesday stated that the United States and Iran are considering extending the ceasefire for two weeks to give room for peace talks.
However, the situation in the Strait of Hormuz remains tense, with the vital oil and gas route reportedly affected since the conflict lasted for almost seven weeks.
At the same time, rising oil prices have sparked concerns about energy inflation, thus reducing expectations of interest rate cuts.
The high interest rate environment is seen as putting pressure on gold as the precious metal does not offer interest returns, making it less attractive to investors.
However, continued demand from major central banks could potentially support gold prices.
The People's Bank of China (PBoC) is reported to have extended gold purchases for an 18th consecutive month until March 2026, reflecting a strategic shift towards reserve diversification and dedollarization efforts in an uncertain global environment.
