Gold prices fell in Asian trade on Thursday as the Federal Reserve’s hawkish stance strengthened the dollar and pressured bullion, while rising geopolitical risks from potential U.S. involvement in the Israel-Iran conflict capped losses.

Meanwhile, platinum reached a 10-year high during Asian hours, driven by tightening supply and rising demand.

Spot Gold fell 0.5% to $3,353.92 an ounce, while Gold Futures for August declined 1.1% to $3,369.77/oz by 02:15 ET (06:00 GMT). 

Israel-Iran conflict, Fed’s hawkish pause spooks investors

Senior U.S. officials are preparing for a potential strike on Iran in the coming days, Bloomberg reported on Wednesday, citing people familiar with the matter.

While plans remain fluid, some officials pointed to the weekend as a possible window for action, the report said.

This comes after Iran’s Supreme Leader, Ayatollah Ali Khamenei, rejected President Trump’s demands for unconditional surrender, and said that neither peace nor war could be imposed on the Islamic Republic.

President Trump said on Wednesday he may or may not strike Iran.

Despite support from global risk-off sentiment, gold remained capped by the Federal Reserve’s hawkish pause on Wednesday.

The Fed held interest rates steady, paused on expected cuts for later this year, and warned of inflationary pressures from U.S. tariffs.

Lower interest rates bode well for gold prices as they reduce the opportunity cost of holding non-yielding assets like bullion.

Platinum hits over 10-yr high on supply crunch

Platinum Futures fell 0.5% to $1,313.0/oz after rising their highest level since September 2014.

 A bullish industry report in late May sparked strong buying, as demand from Chinese jewelry makers and industrial users remains strong, while low inventories and high lease rates are constraining supply.

The metal is increasingly viewed as an attractive alternative to gold amid shifting investor sentiment.

Broader metal prices were lower, as the greenback strengthened after the U.S. central bank’s rate decision.

Silver Futures dropped 1.5% to $36.665 per ounce.

Benchmark Copper Futures on the London Metal Exchange fell 0.3% to $9,644.35 a ton, while U.S. Copper Futures dropped 0.7% to $4.8205 a pound.