Gold steadied around USD 4,100 on Thursday, finding support after a sharp two-day slide, as investors weighed renewed geopolitical tensions and upcoming US inflation data.
The metal paused its decline despite lingering headwinds, including a firmer dollar and this week’s largest single-day outflow from gold-backed ETFs in five months.
On the geopolitical front, Washington announced new sanctions on Russia’s two largest oil companies after the planned Trump-Putin meeting was shelved, while cross-border strikes intensified near Russia’s Belgorod region.
Meanwhile, reports indicated that the US is considering fresh export restrictions on China tied to American-made software, although President Donald Trump confirmed plans to meet Xi Jinping, which could fuel uncertainty. In the Middle East, the ceasefire in Gaza remained fragile.
Monetary policy expectations continued to provide a floor for bullion. Markets still anticipate two additional Federal Reserve rate cuts by year-end, with traders now focused on Friday’s CPI reading to refine the outlook. Stable inflation figures would likely reinforce the case for further easing, while an upside surprise could revive dollar strength and weigh on gold in the short term.
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