Gold prices moved slightly higher on Thursday, supported by a weaker US dollar and renewed safe-haven demand. Investors reacted to uncertainty over US tariff policy and ongoing US-Iran talks. The recent Gold gains reflect caution in global financial markets.
Spot gold increased by 0.4% to $5,192.28 per ounce as of 0500 GMT. Earlier this week, bullion reached its highest level in more than three weeks. Analysts say Gold gains are driven by fresh concerns over trade policies and geopolitical tensions.
Market strategists noted that investors are re-pricing risks related to tariffs and global politics. A softer dollar also helped push Gold gains higher. When the US currency weakens, gold becomes cheaper for holders of other currencies, increasing demand.
The dollar opened lower after stronger-than-expected earnings from Nvidia improved investor sentiment. However, traders remain cautious as they await further details on new US tariffs. US Trade Representative Jamieson Greer said tariff rates for some countries may rise to 15% or more from the recently imposed 10%. He did not specify which countries would be affected.
Expectations about US interest rates also influenced Gold gains. Markets currently anticipate three 25-basis-point rate cuts by the Federal Reserve this year, according to CME’s FedWatch Tool. Investors are closely watching weekly jobless claims data for clues about future monetary policy decisions. Lower interest rates generally support gold because they reduce the opportunity cost of holding non-yielding assets.
Geopolitical developments added further support. Iran and the United States are holding talks in Geneva to address their long-running nuclear dispute. The discussions aim to prevent new military action following recent tensions. Such uncertainty often increases demand for safe-haven assets like gold.
In other metals, spot silver declined 0.1% to $89.29 per ounce after reaching a three-week high earlier. Platinum rose 0.3% to $2,292.83, while palladium slipped 0.2% to $1,791.79. Analysts at Deutsche Bank said white metals have recently outperformed gold and maintained a positive outlook for silver prices.
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Overall, Gold gains highlight ongoing market caution. Investors continue to monitor trade policy updates, geopolitical risks, and Federal Reserve signals for the next direction in precious metals markets.
