Spot gold fell 0.4 percent to $5,173.60 per ounce by 15:11 ET, while gold futures declined 1.2 percent to $5,180.36 per ounce. The metal has seen significant volatility in recent weeks after retreating from a near $5,600 record high reached in late January, News.Az reports.
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Markets remain sensitive to developments in the Middle East conflict, which entered its twelfth day with continued strikes involving the United States, Israel and Iran. Earlier in the week U.S. President Donald Trump suggested the war could soon end, but ongoing military activity has left investors uncertain about the trajectory of the crisis.
At the same time, investors are assessing inflation risks linked to rising energy prices triggered by the conflict. Higher oil prices could push global inflation upward, potentially forcing central banks to adopt a more hawkish stance. Such a scenario typically strengthens the U.S. dollar and makes gold more expensive for international buyers.
Fresh economic data showed that U.S. consumer inflation remained relatively stable in February. Consumer prices increased 2.4 percent year on year, matching both January’s reading and economists’ expectations. On a monthly basis prices rose 0.3 percent, slightly higher than January’s 0.2 percent but still in line with forecasts.
