Gold prices held near $5,000 an ounce in Asian trading, recovering from a previous surge but facing headwinds from geopolitical tensions and mixed signals from the Federal Reserve's latest meeting minutes. The yellow metal rose over 2% on Wednesday to briefly touch the $5,000 threshold but retreated slightly to $4,971.55 by Thursday afternoon as thin liquidity, exacerbated by Lunar New Year holidays, curbed momentum. Persistent risks, including heightened U.S.-Iran tensions over the Strait of Hormuz and stalled Russia-Ukraine peace efforts, sustained safe-haven demand for bullion.

Federal Reserve minutes revealed divisions among policymakers regarding the interest-rate outlook. While some officials signaled potential further tightening if inflation remains sticky, others suggested conditions for eventual rate cuts later in the year. This split outlook supported a stronger dollar and higher Treasury yields, which typically pressure non-yielding assets like gold by increasing borrowing costs. Consequently, gold traded flat after a modest overnight gain following the hawkish-leaning minutes.

The market now awaits Friday's release of the U.S. personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, for clearer insight into the policy path and potential future gold price direction. The delicate balance between geopolitical risk premiums and rising U.S. interest rates continues to define gold's near-term trajectory.