Gold prices edged higher in Asian trading on Wednesday, attempting a modest recovery after sharp losses in the previous session, as markets continued to assess geopolitical risks stemming from United States-Iran tensions.
Spot gold rose 1.1% to $4,769.57 per ounce by 3:45 pm AEST (5:45 am GMT), clawing back some ground after falling 2.1% on Tuesday.
The rebound followed U.S. President Donald Trump’s decision to extend the ceasefire with Iran, which briefly eased safe-haven demand for the U.S. dollar and lent support to bullion prices.
However, the outlook for gold remains uncertain as progress in U.S.-Iran negotiations appears stalled. Trump has said he is awaiting a “unified proposal” from Tehran, while maintaining a naval blockade of Iranian ports.
Additional reports indicated the U.S. has taken measures to restrict Iraq’s access to dollar shipments in an effort to pressure Iran-backed groups, further complicating the regional outlook.
Despite these tensions, gains in gold were limited by the strength of the U.S. dollar. Robust economic data has reinforced expectations that the Federal Reserve could maintain a tighter monetary policy stance.
U.S. retail sales rose 1.7% in March, marking the strongest increase since March 2025 and exceeding expectations, according to data from the Commerce Department’s Census Bureau.
The stronger-than-expected reading has supported the dollar, reducing the appeal of non-yielding assets such as gold.
Markets also monitored developments surrounding Federal Reserve leadership, as chair-designate Kevin Warsh’s confirmation hearings suggested a potentially less dovish policy approach than previously anticipated, should his nomination be approved.
