FX.co ★ Gold Holds Steady Above $5,180

Gold prices held steady above $5,180 per ounce on Thursday as investors weighed safe-haven demand against the drag from a stronger dollar and rising bond yields. The intensifying conflict between the United States and Iran has driven oil prices above $100 per barrel, typically boosting the appeal of bullion as an inflation hedge. However, gains in gold were capped by forced liquidations stemming from margin calls amid falling global equity markets, as well as by persistent strength in the US dollar index, which makes gold more expensive for overseas buyers.

February consumer price data showed a 0.3% increase, in line with market expectations, but a climb in 10-year US Treasury yields to a five-week high has tempered hopes for imminent interest rate cuts by the Federal Reserve. At the same time, central banks continue to build their physical gold reserves as a safeguard against geopolitical risk, while traders look ahead to upcoming spending data for additional clues on the future path of monetary policy.