Gold prices steadied on Thursday, ending a two-day decline, after President Donald Trump announced an extension of the ceasefire with Iran. The precious metal had faced pressure earlier in the week as investors monitored escalating tensions in the Middle East. The extension provided a momentary reprieve for risk assets.

However, plans for a fresh round of peace talks appeared to stall, leaving the long-term diplomatic trajectory uncertain. The collapse of negotiation prospects suggests underlying tensions between Washington and Tehran remain unresolved. Geopolitical uncertainty typically supports gold as a safe-haven asset.

For investors, the dual dynamics of a temporary ceasefire alongside failed diplomacy create a complex backdrop. Gold's ability to hold ground reflects ongoing market caution about Middle East developments. The commodity remains sensitive to any shifts in US-Iran relations.