Gold Hovers Flat on Thursday

Gold prices stabilized around $5,170 per ounce, paring early session gains as markets weighed escalating US trade protectionism and Middle East geopolitical friction against a resilient dollar. Bullion found support after the administration invoked Section 122 to impose a 10% global tariff following a February 20th Supreme Court ruling that struck down previous emergency duties. This trade pivot reignited inflation fears and safe haven demand as the White House signaled a potential hike to 15%. However demand for gold was capped as January PCE inflation stayed sticky at 3% and the Fed signaled no immediate need for rate cuts. On the supply side central bank accumulation remained a core anchor with monthly net purchases averaging 60 tonnes. While safe haven inflows grew due to stalled US-Iran nuclear talks in Geneva, a 212,000 rise in weekly jobless claims in February 2026 offered a mixed signal.

Gold held firm above $5,180 per ounce on Thursday, extending gains from the previous session and hovering near an almost four-week high, as markets weighed geopolitical tensions and uncertainties surrounding US trade policies. The buildup of US troops in the Middle East kept investors on edge ahead of nuclear talks in Geneva, while Washington stepped up pressure on Iran by sanctioning entities involved in oil and weapons exports. At the same time, the Trump administration moved to maintain its global tariff strategy, raising concerns among trading partners. Trade Representative Jamieson Greer said the president plans to raise tariffs to 15% “where appropriate,” following a 10% levy that took effect after the Supreme Court struck down earlier reciprocal tariffs. On the monetary policy front, persistent inflation concerns pushed traders to delay expectations of the Federal Reserve’s next rate cut to September.

Gold rose to around $5,180 per ounce on Wednesday, recouping most of the previous session’s losses, supported by trade and geopolitical uncertainty. US President Trump’s new 10% global tariff came into effect on Tuesday, with his administration seeking to hike it to 15% in an effort to rebuild its tariff agenda after the Supreme Court invalidated much of his sweeping levies. On Monday, Trump warned that higher tariffs could be imposed on countries that “play games” with recent trade agreements. Meanwhile, investors are watching the continuation of US-Iran nuclear talks on Thursday, with Iran vowing on Tuesday to do “whatever it takes” to secure a deal with Washington. However, gains in bullion were limited by fading expectations of near-term Federal Reserve rate cuts. Two Fed officials said on Tuesday that they see no immediate need to adjust monetary policy, citing improving labor market conditions and persistent inflation.