Gold Extends Losses in Asia as Geopolitical Tensions and Dollar Strength Weigh on Prices

Gold Breaks Below Recent Trading Range

Spot gold fell 0.7% to $4,704.96 an ounce in Asian dealings on Thursday, while gold futures also declined 0.7% to $4,720.11/oz. During the session, spot prices dipped as low as $4,694.23/oz, breaking below the $4,700–$4,900/oz range that had held over the past two weeks.

The metal struggled to gain traction as market participants assessed the outlook for the Iran war and the broader geopolitical backdrop. Uncertainty over the status of further U.S.-Iran talks, combined with questions around U.S. monetary policy, constrained demand for bullion and contributed to the downside move in prices.

Geopolitics, Oil, and Dollar Strength Pressure Bullion

Tensions between Washington and Tehran remained elevated after President Donald Trump indefinitely extended a ceasefire. Planned talks between the two sides largely fell through this week, and both governments signaled limited openness to renewed negotiations.

Iran stated that the United States must lift a blockade against the country before any talks can proceed, while Washington insisted on a full reopening of the Strait of Hormuz. Iran continued to block Hormuz, and the U.S. maintained a naval blockade and policed Iranian ships in broader Asia, leaving the two sides at an impasse.

Oil prices surged back above $100 a barrel this week, keeping concerns over energy-driven inflation in focus. At the same time, metal markets faced additional pressure from a stronger U.S. dollar, which steadied near a 1½-week high on Thursday.

The greenback firmed after Trump’s nominee for Federal Reserve Chair, Kevin Warsh, said he had made no commitments to cut interest rates, despite demands from the president. Higher or steady interest rate expectations tend to support the dollar and can weigh on non-yielding assets such as gold.

Other precious metals registered steeper declines. Spot silver fell 2.5% to $75.7245/oz, while spot platinum dropped 1.9% to $2,040.16/oz.

FAQ

What happened to gold prices in Asian trade on Thursday?
Gold prices fell in Asian trade, with spot gold down 0.7% to $4,704.96/oz and futures down 0.7% to $4,720.11/oz, briefly breaking below a recent $4,700–$4,900/oz trading range.

What factors weighed on gold and other precious metals?
Uncertainty over the Iran war, stalled U.S.-Iran talks, concerns about energy-fueled inflation as oil moved back above $100 a barrel, and a stronger U.S. dollar linked to interest rate expectations all pressured precious metals.

How did the U.S.-Iran situation influence market sentiment?
The indefinite extension of a ceasefire by President Donald Trump, failed talks, Iran’s continued blocking of the Strait of Hormuz, and the U.S. naval blockade and policing of Iranian ships in Asia contributed to geopolitical uncertainty, affecting gold and broader metal markets.

How did other precious metals perform?
Spot silver fell 2.5% to $75.7245/oz, and spot platinum declined 1.9% to $2,040.16/oz, underperforming gold on the day.