Gold prices surged in Asian trading on Thursday, driven by renewed safe-haven demand amid escalating tensions with Iran and cautious investor sentiment following President Donald Trump’s tariff-related comments.
Bullion had already seen moderate gains earlier in the week due to uncertainty surrounding U.S.-China trade negotiations. Although the talks showed some signs of progress, the lack of concrete details left markets in a risk-off mood.
By 01:24 ET (05:24 GMT), spot gold was up 0.6% at $3,374.94 per ounce, while August gold futures rose 1.5% to $3,394.60/oz.
Safe-Haven Buying Supports Gold and Metals Amid Geopolitical and Trade Fears
Growing fears of conflict in the Middle East—particularly between Iran and Israel—continued to fuel demand for gold. Reports indicated that Israel was preparing for a potential strike on Iran should nuclear negotiations with the U.S. collapse.
On Wednesday, Trump confirmed the withdrawal of U.S. personnel from Iraq and other parts of the region, citing concerns about possible military escalation. Meanwhile, Iranian officials threatened retaliation against U.S. bases if conflict breaks out.
These developments followed Trump’s recent remarks expressing dwindling confidence in reaching a nuclear agreement with Iran, and his firm stance that Tehran would not be allowed to enrich further uranium. Despite these tensions, U.S. and Iranian representatives are expected to resume talks over the weekend.
On the trade front, sentiment was further rattled when Trump said he plans to send letters detailing new tariff policies to major global economies in the coming two weeks. This announcement tempered hopes for broader U.S. trade deals. So far, only a formal agreement with the UK has been signed, and the recent framework reached with China lacks substantive details.
The combined uncertainty around trade and geopolitical issues weighed on the U.S. dollar, helping lift the broader metals complex.
Metals Rally Continues: Platinum Hits Multi-Year High
Platinum futures outperformed other metals, rising 0.8% to $1,251.65/oz—its highest level in over four years. Silver futures gained 0.7% to $36.515/oz, staying near a 13-year high.
Among base metals, London Metal Exchange copper rose 0.5% to $9,699.70 per ton, while U.S. copper futures added 0.4% to $4.8242 per pound.
Goldman Sachs: Platinum Surge May Be Short-Lived
Despite platinum’s strong rally since late May—sparked by a bullish industry report and concerns over tightening supply—Goldman Sachs analysts warned the surge may not last.
Platinum has climbed 37.3% year-to-date in 2025, outperforming gold’s 28.6% rise. However, Goldman expects prices to fall back into a $800 to $1,150/oz range, citing weaker Chinese demand for platinum jewelry, reduced need for automotive emissions controls due to rising EV adoption, and strong output from South Africa.
