Spot Gold was mostly steady on Thursday, trading below a three-week high, as market players remained wary over the frail US-Iran ceasefire.
Yesterday Israel launched its heaviest strikes against Lebanon yet, which led to the death of hundreds of people.
According to the White House, Lebanon is not covered by the two-week ceasefire framework negotiated between Iran and the US.
In response, Iran has again shut shipping traffic through the key Strait of Hormuz and has warned that it may withdraw from the ceasefire if Israeli attacks in Lebanon continue.
Oil prices rose again amid skepticism over the resilience of the ceasefire arrangement.
Meanwhile, the minutes from the Federal Reserve’s March 17-18 meeting showed more policy makers felt that rate hikes could be required to counter inflation that still remained above the central bank’s 2% target.
Higher interest rates tend to increase the opportunity cost of holding Gold, which pays no interest.
Fed policy makers nevertheless signaled expectations for one rate cut before year-end and another in 2027, although the specific timing was left open.
Investors now awaited the release of US PCE inflation data later on Thursday and CPI inflation figures on Friday for fresh clues over monetary policy trajectory.
Gold was last down 0.06% on the day to trade at $4,715.99 per troy ounce.
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