Gold prices were steady on Thursday as investors remained on the sidelines ahead of the third round of indirect U.S.-Iranian nuclear negotiations in Geneva, hoping for a signal on whether the talks can ease geopolitical risks.
Spot gold was down 0.1% at $5,165.77 an ounce as of 9:19 a.m. ET. US gold futures for April delivery fell 0.8% to $5,182.10.
“Gold and silver are trying to break above the $5,200 and $90 resistance levels, but have been unable to sustain gains so far this week, increasing drawdown risk if a short-term geopolitical deal materializes,” FOREX.com market analyst Razan Hilal said in a note.
Iran on Thursday signaled flexibility in indirect nuclear negotiations with the United States in Geneva. The talks were held amid mounting pressure on Tehran to reach a deal as the United States strengthens its military presence in the region, but mediator Oman said it hoped the two sides would make further progress.
“There’s a lot of interest in how this third round of talks will play out, but regardless, I think there’s enough uncertainty at this point,” said Peter Grant, vice president and senior metals strategist at Zenner Metals.
Non-yielding gold is seen as a safe store of value in times of geopolitical and economic uncertainty.
Grant said he still expects the market to move towards $5,340.72 and then $5,400, although a short-term pullback is possible.
U.S. Trade Representative Jamieson Greer said Wednesday that U.S. tariffs on some countries will increase from a new 10% to more than 15%, but he did not mention specific trading partners or provide further details.
Meanwhile, the number of Americans filing new claims for unemployment benefits rose slightly last week, and the unemployment rate appeared to hold steady in February amid a stable labor market.
Markets continue to expect two rate cuts from the US Federal Reserve this year.
Spot silver fell 2.8% to $86.94 an ounce. Spot platinum fell 1.6% to $2,249.40 an ounce, while palladium also fell 1.6% to $1,766.95.
(Reporting by Anmol Choubey in Bengaluru; Editing by Mark Potter)
