Gold prices edged up modestly on Thursday as the conflict between Iran and Israel entered its seventh day, heightening geopolitical tensions and driving safe-haven demand. Spot gold was trading at $3,371.15 an ounce as of 0526 GMT, marking a 0.1% increase. Meanwhile, U.S. gold futures saw a slight dip of 0.6%, settling at $3,388.60.
Market analysts highlighted that gold’s recent bounce reflects cautious positioning as investors await the next developments in the escalating Israel-Iran conflict. Tim Waterer, Chief Market Analyst at KCM Trade, noted, “If the U.S. chooses to become directly involved, it could significantly raise the geopolitical stakes, pushing gold prices higher.” Historically, gold is favored as a store of value amid geopolitical and financial uncertainty, drawing demand whenever tensions flare.
The ongoing conflict has created unease globally, particularly after U.S. President Donald Trump refrained from confirming whether America would join Israel’s strikes targeting Iranian nuclear and missile facilities. This uncertainty has prompted residents in Tehran to evacuate amid continuing air raids. U.S. military officials revealed that several aircraft and naval vessels have been repositioned from vulnerable Middle East bases in anticipation of possible Iranian retaliation.
On the economic front, the U.S. Federal Reserve held interest rates steady on Wednesday, maintaining the benchmark rate but signaling a slower pace of rate cuts than previously anticipated. Although policymakers still expect a half-percentage-point reduction later this year, Fed Chair Jerome Powell cautioned against overreliance on forecasts, citing “meaningful” inflation risks ahead, partly fueled by higher import tariffs.
In commodities, platinum surged to a fresh peak not seen since September 2014, rising 1% to $1,336.08 per ounce, with an earlier session high of $1,348.72. The metal’s strong performance is largely driven by supply concerns. Brian Lan, Managing Director at GoldSilver Central in Singapore, explained that elevated platinum lease rates — the cost to borrow platinum — are discouraging refineries from manufacturing, tightening supply despite steady demand. The tightness in above-ground inventory further exacerbates this shortage.
Other precious metals also saw gains: palladium increased by 1.1% to $1,059.96 per ounce, reflecting healthy demand, while silver prices remained steady at $36.72 an ounce.
As geopolitical uncertainty continues and supply constraints linger in key metals, investors are closely watching market movements and central bank policies for signals of the next major shifts in precious metals pricing.
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