Gold prices edged higher on Thursday, June 19, as tensions between Iran and Israel entered their seventh day, fueling safe-haven demand. Meanwhile, platinum surged to its highest level in over a decade on concerns about tightening supply.
As of 05:26 GMT, spot gold was up 0.1% at $3,371.15 per ounce, while U.S. gold futures slipped 0.6% to $3,388.60.
“Gold has made a modest bounce as markets await the next developments in the Israel-Iran conflict. If the U.S. chooses to become directly involved, it could significantly escalate geopolitical risks,” said Tim Waterer, Chief Market Analyst at KCM Trade.
Gold traditionally serves as a refuge during periods of geopolitical and financial uncertainty, and current regional instability has supported the metal’s demand.
On the monetary policy front, the U.S. Federal Reserve kept interest rates unchanged on Wednesday. While policymakers still anticipate cutting rates by half a percentage point this year, the pace of future reductions has moderated. Fed Chair Jerome Powell cautioned against overreliance on the rate-cut outlook, citing “meaningful” inflation risks ahead due to looming higher import tariffs.
In parallel, platinum prices rose 1% to $1,336.08 per ounce, having earlier climbed to $1,348.72—its highest level since September 2014.
The platinum market is experiencing supply constraints, partly reflected in elevated lease rates—the cost to borrow platinum. “High lease rates are deterring refineries from manufacturing because costs are significantly higher, while demand remains strong. This is tightening above-ground inventories,” explained Brian Lan, Managing Director at GoldSilver Central, Singapore.
The supply-demand imbalance continues to underpin platinum’s upward momentum, even as broader precious metals markets navigate geopolitical and economic uncertainties.
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