Spot gold fell below $4,500 per ounce early on Thursday, extending losses as the Middle East conflict continues to fuel broad market volatility and keep pressure on bullion.

Gold traded at $4,426.50 per ounce as of 0605GMT on Thursday, down 1.6 percent on the day.

The latest decline came after a sharp and volatile selloff in recent weeks. Gold prices have fallen 15 percent since the conflict began on February 28 and were trading well below their January 2026 record high of $5,595 per ounce.

Last week, the price of gold saw its biggest weekly drop since 1983, losing more than 10 percent.

The price of silver per ounce also saw a decline, falling over 2 percent to $69.73 per ounce.

The volatility followed mixed remarks by the US and Iranian officials.

The White House maintained that peace negotiations are ongoing, but Tehran dismissed US proposals and set out its own demands, including sovereign authority over the Strait of Hormuz, a vital shipping route.

Although gold is traditionally seen as a safe-haven asset during geopolitical crises, rising oil prices and stronger inflation fears have lifted expectations that interest rates could stay higher for longer, reducing the appeal of non-yielding bullion.

The Middle East conflict has also unsettled broader financial markets by driving up energy prices and stoking concern over supply disruptions, particularly through the Strait of Hormuz