Gold prices fell in Asian trade on Thursday, sinking back into a trading range seen for more than a week as few signs of de-escalation in the U.S.-Israel war with Iran spurred flows into oil and the dollar.
While bullion continued to flit between the $5,000-$5,200 an ounce level, it still remained relatively heady, as concerns over the war kept some haven demand in play.
Spot gold fell 0.4% to $5,154.46/oz by 20:51 ET (00:51 GMT), while gold futures fell 0.4% to $5,159.40/oz.
Weakness in gold came as continued hostilities between the U.S., Israel, and Iran kept market focus squarely on the dollar and oil. Oil prices jumped sharply in the early hours of Thursday after media reports said two international oil tankers had been struck near Iraq.
Higher oil prices kept markets largely on edge over a long-term increase in inflation. This in turn fueled concerns over more hawkish central banks in the coming months– a scenario that bodes poorly for gold.
Bullion had briefly broken above $5,200/oz on Wednesday, but fell back below the level after the release of U.S. consumer price index inflation data. While the print read in line with expectations, it spurred concerns over a future, energy-driven increase in price pressures.
Other precious metals retreated on Thursday. Spot silver fell 0.2% to $85.5635/oz, while spot platinum fell 0.1% to $2,167.26/oz.
Mixed signals on the Iran conflict also spurred a whipsaw performance in metal markets this week. U.S. President Donald Trump and other officials repeatedly insisted that the Iran war was close to ending, despite continued hostilities between the U.S., Israel, and Iran.
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