Gold prices remained flat on Thursday, caught between two opposing macroeconomic forces.
Recent US data indicated that inflationary pressures are easing, a development that typically weakens the case for holding non-yielding assets.
However, this disinflationary signal was immediately counterbalanced by a fresh escalation in the Middle East conflict, which sent oil prices higher and revived concerns about persistent energy cost inflation.
The standoff in precious metals reflects a broader market hesitation.
While softer US inflation data had initially sparked optimism for a more dovish Federal Reserve stance, the geopolitical flare-up reintroduced uncertainty regarding supply chains and energy costs.
Investors are now weighing the potential for rate cuts against the risk of renewed inflationary spikes driven by higher oil prices.