Gold prices were largely steady in Asian trading as markets assessed uneven signals surrounding a U.S. proposal to end the conflict with Iran, even as Tehran continued to review the plan.
Spot gold was last up 0.1% at $4,509.06 an ounce by 22:57 ET (02:57 GMT). U.S. Gold Futures slipped 1.1% to $4,536.10.
Earlier in the week bullion had staged a rebound, pushing back above the $4,500 an ounce threshold after a sharp correction. That recovery was supported by a softer U.S. dollar and tentative optimism about diplomatic engagement between Washington and Tehran.
Still, gains have been limited as uncertainty around the conflict remains. Iran is reviewing a U.S. proposal intended to end hostilities, but mixed signals about whether those discussions will advance have left investors cautious. While Iran has not formally accepted the plan, it has also stopped short of an outright rejection - a stance that has generated cautious hope for a possible de-escalation path.
At the same time, Iran has publicly denied the existence of direct negotiations with Washington and indicated that significant differences remain. That lack of clarity has kept traders on edge and contributed to subdued conditions in oil markets on Thursday.
Washington has warned it will take stronger measures if Iran does not engage constructively on the proposal, adding another element of risk to the outlook.
Gold, often viewed as a safe-haven asset during geopolitical turmoil, has exhibited unusually volatile behavior in recent weeks. Prices fell sharply earlier in the month despite escalating tensions, a decline attributed to market expectations for higher-for-longer interest rates and a firmer U.S. dollar.
Movements in oil also factored into sentiment for bullion. A surge in crude prices has stoked inflation concerns, which can increase pressure on central banks to maintain elevated interest rates - a dynamic that weighs on non-yielding assets such as gold.
Broader financial markets reflected a cautious tone as investors awaited clearer direction on both geopolitical developments and global monetary policy.
Among other precious metals, silver rose 0.1% to $71.32 per ounce, while platinum declined 0.6% to $1,918.60/oz.
Context and implications
The interplay of geopolitical signals from Tehran, statements from Washington, and moves in oil and currency markets has left gold trading in a narrow range. Market participants appear to be balancing the metal's traditional role as a hedge against turmoil with the countervailing influence of monetary policy expectations and a stronger dollar.