Spot gold was up 0.5% at $5,195.99 per ounce as of 0639 GMT, rebounding from more than a three-week high reached earlier in the week. U.S. gold futures for April delivery slipped 0.2% to $5,213.50.
Christopher Wong, strategist at OCBC, noted that the price movements reflect “a re-pricing of fresh policy (tariff) uncertainty, geopolitical concerns, and a subdued dollar,” adding that “two-way consolidation is still likely as markets digest geopolitical news, dollar moves, tariff surprises, and Fed policy uncertainty.”
A softer greenback boosted gold by making the dollar-denominated metal cheaper for holders of other currencies. Investor confidence in risk assets also rose after Nvidia reported better-than-expected earnings, though markets remain cautious ahead of additional details on U.S. tariffs. On Wednesday, U.S. Trade Representative Jamieson Greer said the tariff rate for some countries would rise to 15% or higher from the newly imposed 10%, without specifying which trading partners would be affected.
Monetary policy expectations are also influencing the market. Investors currently price in three 25-basis-point rate cuts from the Federal Reserve this year, according to CME Group’s FedWatch Tool. Weekly jobless claims, due later in the day, are also being closely watched for clues on the Fed’s path.
Geopolitical developments added to gold’s safe-haven appeal. Iran and the U.S. were scheduled to hold talks in Geneva on Thursday, seeking to resolve their longstanding nuclear dispute and prevent potential U.S. military strikes following recent Iranian troop movements.
Other precious metals saw mixed movements. Spot silver edged up 0.1% to $89.48 per ounce after hitting a three-week high on Wednesday. Deutsche Bank highlighted that white metals are outperforming gold, supporting their forecast for silver at $100 per ounce by year-end based on a gold-silver ratio of 60. Spot platinum rose 0.8% to $2,305.20 per ounce, while palladium slipped 0.1% to $1,793.84, both having touched three-week highs in the previous session.
Market attention remains focused on the interplay between U.S. economic indicators, central bank policy, geopolitical developments, and currency movements — all of which continue to influence gold and other precious metals.