Gold Prices Firm Amid Escalating Tensions, US Inflation Data Looms

Gold prices held firm on Thursday at $4,461.40 an ounce, while silver declined 0.78% to $68.11 an ounce in global markets. The precious metals sector is being pulled in different directions by escalating West Asia tensions and a weaker dollar, which supports demand for gold as a safe-haven asset.

The US inflation data release on Friday will be a key trigger for bullion prices. A softer-than-expected reading could reduce expectations of tighter monetary policy and provide further support to gold, while a stronger print could push yields higher and weigh on the metal.

Vedika Narvekar from Anand Rathi Share and Stock Brokers expects gold to remain in the $4,300-$4,500 an ounce range in the near term. She believes a sustained move above $4,500 an ounce could open the way for further gains.