Gold prices fell 1 percent to $4,476.51 per ounce as markets await clarity on West Asia ceasefire negotiations. Investors are closely monitoring geopolitical developments, with significant price movements expected once peace talks show concrete progress. Crude oil climbed above $100 a barrel amid concerns that prolonged conflict could disrupt energy supplies, particularly through the Strait of Hormuz. While higher oil prices typically support gold as an inflation hedge, elevated interest rates continue to dampen demand for the non-yielding asset. The Federal Reserve is expected to maintain rates throughout 2026, reversing earlier market expectations for two rate cuts. Analysts predict gold will remain volatile over the next 48 hours as headlines drive short-term trading, with major moves likely early next week as geopolitical clarity emerges.
