Gold prices firmed on Thursday as escalating tensions between Israel and Iran prompted investors to seek refuge in the safe-haven metal. Meanwhile, platinum surged to its highest level since September 2014.
Spot gold edged up 0.2% to $3,374.49 per ounce at 1100 GMT, while US gold futures dipped 0.5% to $3,391.00.
“We’re seeing haven flows into gold, which is unsurprising given the ongoing conflict between Iran and Israel,” said Fawad Razaqzada, market analyst at City Index and FOREX.com. Declines in equity markets have further supported gold’s appeal, he added.
The conflict intensified as Israel announced on Friday it had struck Iran’s only operating nuclear power plant on the Gulf coast, marking a significant escalation in the air war.
On the economic front, the Federal Reserve maintained interest rates steady on Wednesday, with policymakers projecting a half-percentage point cut later this year. However, Fed Chair Jerome Powell cautioned against overreliance on these projections, warning of “meaningful” inflation risks amid rising import tariffs.
Gold’s appeal as a safe-haven asset remains strong amid geopolitical and economic uncertainty, particularly in a low-interest-rate environment.
Platinum and Other Metals
Platinum, after reaching a session high—the strongest since September 2014—retreated 2.5% to $1,289.71 per ounce. The metal’s rally is supported by rising Chinese imports, persistent supply concerns, elevated lease rates, and growing investor interest as consumers turn to platinum amid high gold prices.
“The supply-demand dynamics in platinum suggest further price upside,” noted Tim Waterer, Chief Market Analyst at KCM Trade.
Palladium fell 1.1% to $1,036.74 per ounce, while silver declined 1.2% to $36.31 per ounce.
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