Gold Prices Rise Amid Iran Conflict Uncertainty
Gold prices moved higher during Asian trading hours on Tuesday but remained within a tight range as markets searched for clearer signals regarding a potential de-escalation in the ongoing conflict between the United States, Israel, and Iran.
Bullion gained as overall market risk appetite improved after U.S. President Donald Trump suggested that the conflict with Iran may end soon. He also indicated that Washington could introduce measures aimed at controlling the recent surge in global oil prices.
• Spot Gold: $5,175.48/oz (+0.8%)
• Gold Futures: $5,184.79/oz (+1.6%)
Despite the gains, gold continued trading within a narrow $5,000–$5,200 range, a level that has held for most of the past week. Monday's session saw significant volatility as traders reacted to rapid developments in the Middle East.
Gold Range Holds Amid Mixed Safe-Haven Demand
Although geopolitical tensions increased safe-haven demand for gold, gains were limited by concerns that higher oil prices could drive global inflation. Such inflationary pressures may force major central banks to maintain a more hawkish monetary policy stance.
Analysts at ANZ noted that gold's strong rally earlier this year also triggered profit-taking by investors seeking liquidity during the recent sharp decline in global equity markets.
Other Precious Metals Advance
Other precious metals also posted gains:
- Silver rose nearly 6% to $89.19/oz
- Platinum gained 0.7% to $2,201.48/oz
- LME Copper futures climbed 1.3% to $13,095.30 per tonne
Trump Signals Possible De-Escalation
Risk sentiment improved after Trump stated several times on Monday that the war with Iran could end soon. He also suggested potential policy measures to prevent supply disruptions in global oil markets, including temporarily waiving sanctions on certain oil exporters such as Russia.
However, Trump did not provide a clear timeline for de-escalation and maintained a strong warning toward Tehran. He stated that the United States would respond forcefully if Iran attempted to block the Strait of Hormuz, a critical route for global oil shipments.
Iran rejected Trump's claims and reiterated that it may continue blocking the strait until U.S. and Israeli military actions against Tehran cease.
Outlook
The conflict entered its 11th consecutive day on Tuesday, and tensions in the Middle East remain elevated. If the war continues, analysts expect gold to remain supported as investors turn to safe-haven assets amid rising geopolitical and inflation risks.