Gold prices struggled to maintain upward momentum during Thursday's Asian deals, hovering just above the US$4,500 level.
By 3:30 pm AEDT (4:30 am GMT), spot gold was trading 0.3% higher at $4,519.40 per ounce.
The precious metal snapped a two-day recovery streak, with price action reflecting growing uncertainty around developments in the Middle East.
Conflicting signals over potential ceasefire negotiations between the United States and Iran have fuelled volatility across financial markets.
Safe-haven demand has been split, with the U.S. dollar attracting renewed buying interest amid escalating tensions, limiting gold’s upside.
Typically, both assets benefit during periods of heightened risk, but the dollar’s relative strength has weighed on bullion.
United States President Donald Trump has continued to assert that negotiations with Iran are underway. However, Tehran has repeatedly denied engaging in direct talks.
Iranian Foreign Minister Abbas Araghchi said the U.S. proposal had been “passed on to the country’s senior authorities” but emphasised that Iran has “no intention of negotiating for now”.
Instead, Iran has outlined its own five-point framework, which includes conditions such as ending hostilities, halting targeted assassinations of its officials, securing guarantees against future conflicts, receiving reparations, and asserting control over the Strait of Hormuz.
Despite these developments, market participants remain sceptical about the prospects for a near-term resolution.
Some investors view the reported peace efforts as a strategic delay, allowing time for potential military escalation, including the possibility of a broader ground operation targeting Iran’s Kharg Island.
