Gold prices were steady during Asian trading on Friday and remained on track for strong gains in February, supported by sustained safe haven demand. Rising geopolitical tensions and persistent economic uncertainty throughout the month have kept investors positioned in bullion.
Uncertainty surrounding U.S. trade policy and concerns about slowing growth in major global economies have further strengthened demand for defensive assets. These factors helped gold recover most of the losses it suffered in late January.
Fresh geopolitical risks also added to the appeal of gold. Reports of conflict between Pakistan and Afghanistan boosted haven demand, although the situation has so far remained contained within the region.
Spot gold was steady at $5,187.18 per ounce, while April gold futures rose 0.2% to $5,203.61 per ounce. For the month, spot gold was up 6.7%, rebounding sharply from early-February lows. At one point, prices had dropped to around $4,600 per ounce after a speculative rally quickly reversed.
Tensions involving Iran were another key driver of gold’s recovery. The United States increased its military presence in the Middle East and warned of potential action if Tehran refused a nuclear agreement. Although recent talks between the two sides ended without a deal, both agreed to continue negotiations, offering limited optimism but maintaining elevated uncertainty.
Concerns about the U.S. economy also supported gold prices. A Supreme Court ruling that struck down most of President Donald Trump’s trade tariffs created fresh uncertainty in financial markets. Trump responded by proposing new tariffs under a different legal framework and signaling the possibility of further levies, keeping investors cautious about potential economic disruptions.
Other precious metals also posted gains on Friday and were set for solid monthly performances. Spot silver climbed 1.7% to $89.7785 per ounce and was up 6% in February. Platinum surged 3% to $2,351.63 per ounce, bringing its monthly gain to 8.4%.
In industrial metals, copper prices edged higher but recorded only modest gains for February. Investors are closely watching demand from China, the world’s largest copper importer.
Benchmark copper futures on the London Metal Exchange rose 0.2% to $13,333 per ton and were up 1.2% for the month. COMEX copper futures advanced 0.4% to $6.0480 per pound, with monthly gains of 1.1%.
Copper’s relatively subdued performance in February was partly due to reduced trading activity during China’s Lunar New Year holiday, when mainland markets were closed for more than a week. Analysts noted that copper inventories in China and globally increased more than expected during the break, amid mining and trade disruptions.
With Chinese markets reopening, attention has shifted to potential increases in buying activity. Copper demand is widely expected to strengthen in the coming quarters, particularly as global investment in artificial intelligence infrastructure accelerates.
