Gold held steady near $4,700 per ounce on Thursday after sharp swings in the previous session, as investors weighed a fragile ceasefire in the Middle East against sporadic clashes and ongoing uncertainty over the reopening of the Strait of Hormuz. Iranian media reported that tanker traffic through the strait had been suspended following Israeli strikes on Lebanon, while a senior Iranian official said three provisions of the ceasefire proposal had already been violated.
At the same time, US Vice President JD Vance said there were signs the strait could soon begin to reopen, as he led a US delegation to Islamabad for direct talks with Iran. Oil prices posted a modest rebound, and both the US dollar and Treasury yields edged higher, continuing to exert downward pressure on gold.
On Wednesday, bullion had jumped as much as 3.3% after the ceasefire was announced, but it later surrendered nearly all of those gains as investors locked in profits amid a broader risk-on rally in global equities.
