Gold closes below $5,000

April gold futures inched up 0.1% to $5,014.3 an ounce

Gold prices closed Thursday's volatile trading lower, as investors assessed rising tensions between the US and Iran, while awaiting US inflation data following fresh signs of labor market stability.

Gold futures for April delivery fell 0.24%, or $12.10, to settle at $4,997.40 per ounce. Meanwhile, silver futures for February delivery held steady at $77.565 per ounce.

Precious metals came under pressure from a stronger US dollar and growing expectations that the Federal Reserve may keep interest rates unchanged for an extended period, after official data showed weekly jobless claims declined at their fastest pace since last November.

The data reinforced signs of resilience in the US labor market, as investors now await the release of core Personal Consumption Expenditures (PCE) inflation data — the Fed’s preferred inflation gauge — on Friday, for further insight into the monetary policy outlook.

Gold’s losses were partially limited by escalating concerns over a potential military confrontation between the US and Iran, after US President Donald Trump said he would decide within 10 days whether to continue diplomatic negotiations with Tehran or order a military strike.