Muscat: In spot trading, gold slipped marginally by 0.1 percent to $4,614.98 an ounce, heading toward a weekly loss of around 2 percent. The precious metal had earlier touched its lowest level in a month on Wednesday, reflecting cautious market behaviour amid shifting economic signals.

U.S. gold futures for June delivery also edged down by 0.1 percent to $4,626.40. Trading volumes remained subdued, largely due to the closure of financial markets in China and India, the world’s largest consumers of gold, on account of public holidays.

Market focus remained firmly on geopolitical developments, particularly after Iran warned it would respond with “painful and longer-lasting strikes” on U.S. targets if Washington resumes attacks. The ongoing tensions have kept investors on edge, influencing commodity movements globally.

Meanwhile, oil prices surged, with Brent crude climbing above $110 a barrel, as diplomatic efforts to ease tensions with Iran showed little progress. The rise in oil prices has fueled concerns about inflation, which in turn has impacted gold’s appeal as a safe-haven asset.

On the monetary policy front, major central banks maintained a cautious stance. The European Central Bank and the Bank of England kept interest rates unchanged on Thursday, aligning with similar decisions earlier in the week by the Federal Reserve and the Bank of Japan. Stable interest rates, combined with inflation worries, have contributed to gold’s muted performance.

Among other precious metals, silver gained 0.4 percent to $73.99 an ounce, while platinum slipped 0.2 percent to $1,981.25. Palladium, meanwhile, recorded a modest increase of 0.1 percent to $1,525.36 an ounce.