Gold prices moved higher on Thursday as a softer U.S. dollar and easing oil prices improved sentiment across precious metals markets. Investors continued to assess diplomatic developments in the Middle East, with renewed hopes that tensions involving the United States and Iran could gradually de-escalate.

The decline in the dollar made gold more attractive for international buyers, while lower energy prices helped reduce concerns that inflation could accelerate further. As a result, demand for traditional safe-haven assets received additional support.

Market participants remain highly focused on geopolitical headlines, as changes in the outlook for oil prices, inflation, and interest rates continue to influence gold's direction. Recent comments from policymakers have suggested that inflationary pressures linked to Middle East tensions may not have a lasting impact on monetary policy, providing some reassurance to investors.

Despite short-term volatility, gold continues to benefit from its role as a portfolio diversifier during periods of uncertainty. Investors are now watching upcoming economic data and diplomatic negotiations for clues about the next move in both precious metals and broader financial markets.