Pressuring bullion, crude oil climbed above $100 a barrel as investors re-examined prospects for de-escalation in West Asia.
Spot gold fell 1 per cent to $4,476.51 per ounce by 0555 GMT. US gold futures for April delivery lost 2.1 per cent to $4,457.
US President Donald Trump said Iran was desperate to make a deal to end nearly four weeks of fighting, contradicting the Iranian foreign minister who said his country was reviewing a US proposal but had no intention of holding talks to wind down the conflict.
“In the next 24 to 48 hours, (gold prices) will just be about reacting to headlines about negotiations,” said Kyle Rodda, a senior financial market analyst at Capital.com.
“The really big moves will happen probably at the start of next week when it becomes clearer whether the US launches a ground invasion in Iran over the weekend.”
Trump has vowed to hit Iran harder if Tehran fails to accept that the country has been “defeated militarily”, White House press secretary Karoline Leavitt said on Wednesday.
Crude climbs back
Brent crude futures climbed back above $100 a barrel on concerns that protracted fighting in West Asia will further disrupt energy flows.
Since the start of the US-Israeli war on Iran, Tehran has attacked nations that host US bases and effectively closed the Strait of Hormuz, which handles a fifth of the world’s oil and liquefied natural gas.
Higher crude prices tend to fuel inflation by pushing up transport and manufacturing costs. Although rising inflation typically boosts gold’s appeal as a hedge, high interest rates weigh on demand for the non-yielding asset.
Markets now see almost no chances of a Federal Reserve rate cut this year, according to CME Group’s FedWatch Tool. Before the conflict, markets were expecting at least two cuts.
Spot silver fell 1.9 per cent to $69.90 per ounce. Spot platinum was down 1.4 per cent at $1,893.60, while palladium dropped 2 per cent to $1,394.83.
Published on March 26, 2026