Gold prices moved higher during Asian trading on Tuesday, although the metal remained confined within a narrow range as investors awaited clearer signals about a potential de-escalation in the U.S.-Israeli conflict involving Iran.
The precious metal gained support from improving market sentiment after U.S. President Donald Trump suggested that the conflict with Iran could end soon. He also indicated that Washington was exploring measures to help stabilize oil prices following the recent surge in energy markets.
Spot gold increased about 0.8% to $5,175.48 per ounce by 01:55 ET (05:55 GMT), while gold futures climbed 1.6% to $5,184.79 per ounce. Prices had already shown volatility on Monday, ending the session slightly higher after sharp intraday fluctuations.
Gold Remains Range-Bound Between $5,000 and $5,200
Despite Tuesday’s gains, gold has largely traded within a $5,000 to $5,200 per ounce range over the past week. Investors continue to evaluate multiple global risks that are shaping financial markets.
While geopolitical tensions in the Middle East have supported safe-haven demand for gold, the metal’s upside has been limited by inflation concerns. Rising energy prices linked to the conflict could push global inflation higher, potentially prompting major central banks to adopt a more hawkish stance on interest rates.
Analysts at ANZ also noted that gold’s strong rally earlier this year has led some investors to take profits. At the same time, market participants have sought liquidity during periods of volatility in global equity markets.
Other Precious and Industrial Metals Advance
Other precious metals also posted gains on Tuesday. Spot silver surged nearly 6% to $89.19 per ounce, while platinum rose around 0.7% to $2,201.48 per ounce.
Industrial metals also strengthened. Copper futures traded on the London Metal Exchange increased about 1.3%, reaching $13,095.30 per tonne.
Trump Comments Raise Hopes of Iran Conflict De-escalation
Risk appetite improved after President Donald Trump suggested on Monday that the conflict involving Iran could soon come to an end. His remarks also included potential steps to mitigate oil supply disruptions caused by the crisis.
Among the options reportedly being considered are temporary waivers on certain oil sanctions, including those affecting Russian exports.
However, Trump did not provide a clear timeline for a possible resolution and continued to issue strong warnings toward Tehran. He cautioned that the United States would respond decisively if Iran attempted to block the Strait of Hormuz, a crucial route for global oil shipments.
Iran rejected the claims that the conflict was nearing an end and stated that it would continue blocking the Strait of Hormuz until U.S. and Israeli attacks on Tehran cease.
Ongoing Conflict Continues to Support Gold
The conflict entered its eleventh consecutive day on Tuesday, with tensions in the Middle East showing few signs of easing.
If the crisis continues, analysts expect gold to remain supported by strong safe-haven demand. Prolonged instability could also amplify inflationary pressures through higher oil prices, further increasing uncertainty in global markets.
