Gold prices increased during Asian trading on Tuesday but remained within a narrow range as investors looked for clearer signals about a potential de-escalation in the U.S.–Israel conflict with Iran.
The precious metal advanced alongside a broader improvement in market risk sentiment after U.S. President Donald Trump suggested the conflict with Iran could end soon and said Washington was also considering steps to help curb the recent surge in oil prices.
Spot gold climbed 0.8% to $5,175.48 per ounce as of 01:55 ET (05:55 GMT), while gold futures gained 1.6% to $5,184.79 per ounce. Spot prices had edged slightly higher on Monday after experiencing significant volatility throughout the session.
Gold stays within the $5,000–$5,200 range as safe-haven demand remains mixed.
Gold stayed firmly within the $5,000–$5,200 per ounce range set over the past week, as traders weighed a wave of uncertainty surrounding the global economy.
Although the conflict with Iran boosted safe-haven demand for gold, gains were limited by worries that the crisis could fuel inflation, potentially prompting more hawkish policies from major central banks.
Analysts at ANZ also pointed out that gold’s strong rally this year has faced bouts of profit-taking, as investors looked to raise liquidity during a sharp selloff in global equity markets.
Other precious metals moved higher on Tuesday, with spot silver climbing nearly 6% to $89.1915 per ounce, while spot platinum gained 0.7% to $2,201.48 per ounce. In the industrial metals market, LME copper futures rose 1.3% to $13,095.30 a tonne.
Trump signals Iran tensions may ease, boosting oil supply outlook.
Risk sentiment improved on Tuesday and oil prices declined after Donald Trump said several times on Monday that the war with Iran could soon come to an end. Trump also floated potential steps to reduce supply disruptions caused by the conflict, including temporarily easing sanctions on certain oil exporters, particularly Russia.
However, he did not provide a clear timeline for any de-escalation and continued to maintain a tough stance toward Tehran. Trump warned that the Islamic Republic would face severe consequences if it attempted to block the Strait of Hormuz.
“We will strike easily destroyable targets that would make it virtually impossible for Iran to rebuild as a nation again — death, fire and fury will follow,” Trump said.
Iran dismissed Trump’s statements and reiterated that it would continue blocking the Strait of Hormuz until attacks by the United States and Israel against Tehran cease.
The conflict entered its eleventh consecutive day on Tuesday, with tensions across the Middle East showing little sign of easing. A prolonged war is expected to keep supporting gold prices, as safe-haven demand remains strong amid rising inflation risks driven by disruptions in the oil market.
Sources: Ambar Warrick
THE ETERNAL SOVEREIGN 
Leave a comment