Iran war pushes up oil prices and the dollar, gold prices fall below $5,200 per ounce

Investing.com - On Thursday during Asian trading hours, gold prices declined, returning to a trading range seen over the past week, as signs of easing in the US-Israel and Iran conflicts remained absent, with funds flowing into oil and the US dollar.

Although gold prices continued to fluctuate between $5,000 and $5,200 per ounce, they remained relatively high due to ongoing safe-haven demand driven by concerns over the war.

As of 20:51 Eastern Time (01:51 Beijing Time), spot gold fell 0.4% to $5,154.46 per ounce, and gold futures declined 0.4% to $5,159.40 per ounce.

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Gold weakened as ongoing hostilities between the US, Israel, and Iran kept market focus entirely on the dollar and oil. On Thursday morning, oil prices surged after reports that two international oil tankers near Iraq had been attacked.

The rise in oil prices heightened market vigilance over long-term inflation concerns. This, in turn, raised fears that central banks might adopt a more hawkish stance in the coming months — a negative factor for gold.

On Wednesday, gold briefly broke above $5,200 per ounce but retreated below that level after the release of US consumer price index inflation data. Although the data met expectations, it sparked concerns about rising energy-driven price pressures in the future.

On Thursday, other precious metals also declined. Spot silver fell 0.2% to $85.5635 per ounce, and spot platinum dropped 0.1% to $2,167.26 per ounce.

Mixed signals from the Iran conflict also caused significant volatility in the metals markets this week. US President Donald Trump and other officials repeatedly insisted that the Iran war was nearing an end, despite ongoing hostilities between the US, Israel, and Iran.

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