Gold Price Today: Why Spot Gold Is Holding Near $5,180 as Middle East War Continues

TLDR

• Spot gold traded near $5,183 per ounce on Thursday, holding in a narrow range
• A stronger US dollar and fading rate-cut expectations put pressure on gold prices
• Middle East conflict pushed Brent crude briefly above $100 a barrel, up nearly 60% this year
• Gold ETF holdings fell last week by the most in over two years as investors raised cash
• Silver rose over 1.6% to $87.19; analysts at BMI forecast silver to average $93 per ounce in 2026

Gold is holding near record levels but has lost momentum since the US-Israeli war with Iran began on February 28. Traders are now balancing safe-haven demand against a stronger dollar and shrinking hopes for Federal Reserve rate cuts.

Spot gold was little changed at $5,183.39 per ounce on Thursday morning in New York. US gold futures for April delivery rose 0.2% to $5,190.50. Gold has gained nearly 20% so far this year.

The conflict in the Middle East is the main driver of market uncertainty right now. Two tankers were reported ablaze in Iraqi waters on Thursday in what appeared to be an escalation of Iranian attacks on regional energy infrastructure.

Brent crude briefly jumped back above $100 a barrel during Asian trading hours. Oil prices are up nearly 60% this year. Higher oil prices raise transportation and production costs, which feeds into broader inflation.

Gold is widely seen as a hedge against inflation. But the same inflation fears are also reducing expectations that the Federal Reserve will cut interest rates soon. Higher rates make yield-bearing assets more attractive than gold.

The US dollar gained for a third straight session on Thursday. A stronger dollar makes gold more expensive for buyers using other currencies, which can reduce demand.

Gold ETF Holdings Drop

Despite the price holding steady, gold exchange-traded fund holdings fell last week by the most in more than two years. Investors have been selling gold to raise cash to cover losses elsewhere in their portfolios.

Jeff Currie of Carlyle Group told Bloomberg Television he expects demand for gold to increase coming out of this conflict. He said emerging market buyers are choosing gold over US assets to avoid the risk of having foreign reserves frozen, as happened to Russia in 2022.

Silver and Platinum Also Move Higher

Silver outperformed gold on Thursday, rising 1.6% to $87.19 per ounce. Silver gained more than 146% in 2025.

Analysts at BMI forecast silver to average $93 per ounce in 2026. They said strong investment demand is expected to offset weaker demand from solar panel and jewellery manufacturers at higher price levels.

Spot platinum added 0.7% to $2,184.00. Palladium rose 1.6% to $1,666.70.

Core US inflation came in tame at the start of the year, according to the latest data released Thursday. But forward-looking inflation concerns tied to Middle East conflict led traders to reduce their bets on Fed rate cuts in 2025.

Blue Line Futures’ Streible added that if oil prices stabilize or fall, it could ease treasury yields and the dollar, potentially pushing gold futures higher.

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