Gold prices steadied near US $4,700 per ounce on Thursday after sharp volatility earlier in the week, as investors balanced hopes for a fragile Middle East ceasefire with lingering doubts over its durability and the reopening of the Strait of Hormuz, market data shows.
Bullion had surged on Wednesday after reports of a temporary truce between the United States and Iran eased immediate escalation fears, lifting gold to multi‑day highs as traders sought safe‑haven assets. However, the metals complex gave back most of those gains as profit‑taking and a broader risk‑on rally in global equities took hold, according to traders.
Uncertainty over the ceasefire has kept markets on edge. Iranian media reported that tanker traffic through the Strait of Hormuz was disrupted after strikes linked to the conflict in Lebanon, while Tehran claimed that several provisions of the truce had already been breached.
Oil prices rebounded on Thursday amid concerns that energy flows through the strategically critical strait could remain constrained if the ceasefire falters. Brent crude climbed above US $96 per barrel, while U.S. West Texas Intermediate approached $97, reversing much of Wednesday’s steep declines.
Market sentiment remains fragile, with traders broadly watching developments in diplomatic talks and key economic data due later in the session. A strengthening dollar and higher bond yields have also weighed on gold’s upside, limiting gains for the precious metal.
Analysts say the price trajectory for gold and oil will be driven by progress on ceasefire negotiations, the reopening of the Strait of Hormuz, and broader risk sentiment in global markets, all of which continue to inject volatility into commodity prices.
