Gold settles higher, silver extends losses

April gold futures rose 0.21%, or $11, to settle at $5,134.7 per ounce

Gold prices settled higher on Wednesday, supported by safe-haven demand and a weaker dollar, while silver declined as investors remained cautious amid the war in the Middle East.

April gold futures rose 0.21%, or $11, to settle at $5,134.7 per ounce, after gaining more than 1% earlier in the session.

March silver futures fell 0.35%, or 29 cents, to $82.63 per ounce, extending losses since the start of the week to 10.84%.

Precious metals were supported by a softer dollar after the currency had strengthened earlier in the week, amid hopes of a possible de-escalation in Middle East tensions.

Investor sentiment remained cautious ahead of the US employment report due on Friday. Data from ADP showed US private employers added more jobs than expected in February, although the previous month’s figures were revised lower.

The data comes as concerns grow that higher energy prices linked to the Middle East conflict could intensify inflationary pressures, potentially prompting the Federal Reserve to maintain its hawkish stance on interest rates.