Key Moments
- Spot gold rose 0.8% to $5,175.48 an ounce, while gold futures climbed 1.6% to $5,184.79/oz in Asian trading.
- Prices remained confined to a $5,000-$5,200/oz band as investors balanced safe haven demand against inflation concerns.
- Comments from U.S. President Donald Trump about a potential end to the Iran war and possible oil supply measures helped improve risk appetite.
Gold Holds in Narrow Band Despite Gains
Investing.com – Gold prices advanced in Asian trading on Tuesday but stayed locked within a relatively tight range, as market participants looked for additional indications of easing tensions in the U.S.-Israel war with Iran.
The move higher in bullion came alongside a broader pickup in risk appetite after U.S. President Donald Trump said that the conflict with Iran will end soon and noted that Washington was considering steps to soften the recent surge in oil prices.
By 01:55 ET (05:55 GMT), spot gold was up 0.8% at $5,175.48 an ounce, while gold futures gained 1.6% to $5,184.79/oz. Spot prices had inched higher on Monday after experiencing sharp intraday volatility.
Trading Range and Mixed Safe Haven Flows
Gold continued to trade firmly within the $5,000-$5,200 per ounce range that has been in place over the past week, as investors evaluated multiple sources of uncertainty for the global economy.
The conflict involving Iran has supported safe haven inflows into gold, but that support has been partially offset by worries that the same conflict could fuel stronger inflation, potentially prompting more hawkish positions from major central banks.
According to ANZ analysts, this year’s rally in gold has also faced selling pressure from profit-taking, as investors sought liquidity during a steep selloff in global equity markets.
Performance Across Precious and Industrial Metals
Other precious metals also moved higher on Tuesday. Spot silver jumped nearly 6% to $89.1915/oz, while spot platinum increased 0.7% to $2,201.48/oz.
In the industrial metals space, LME copper futures rose 1.3% to $13,095.30 a tonne.
| Metal | Instrument | Move | Price |
|---|---|---|---|
| Gold | Spot | +0.8% | $5,175.48/oz |
| Gold | Futures | +1.6% | $5,184.79/oz |
| Silver | Spot | +nearly 6% | $89.1915/oz |
| Platinum | Spot | +0.7% | $2,201.48/oz |
| Copper | LME Futures | +1.3% | $13,095.30/tonne |
Trump Comments Boost Risk Sentiment, Pressure Oil
Risk appetite improved on Tuesday, while oil prices moved lower, after Trump repeated on several occasions on Monday that the end of the Iran war was near.
He also highlighted potential actions to ease supply disruptions stemming from the conflict, including the possibility of temporarily waiving sanctions on certain oil sellers, particularly Russia.
However, Trump did not specify when such de-escalation might occur and continued to adopt a largely hawkish tone toward Tehran. He cautioned Iran against closing the Strait of Hormuz.
“We will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them,” Trump said.
Iran dismissed Trump’s statements and said it would keep blocking the Strait of Hormuz until U.S. and Israeli attacks on Tehran halt.
Ongoing Conflict Supports Gold’s Safe Haven Appeal
The war reached its eleventh straight day on Tuesday, with conflict in the Middle East still showing limited signs of abating.
A drawn-out confrontation is expected to continue providing support for gold prices, as safe haven demand is likely to stay elevated in the face of mounting inflationary pressures tied to the oil market.
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