Gold prices climbed sharply as renewed geopolitical tensions and fresh uncertainty over US tariffs strengthened demand for the precious metal.
The price of gold approached $5,200 per ounce, marking a rise of nearly 6% over the past six sessions. Investors reacted to growing concerns over possible US military escalation in the Middle East and the wider impact of American tariffs on global trade.
Washington imposed sanctions on more than 30 entities linked to Iranian oil and weapons exports, increasing pressure on Tehran ahead of nuclear talks in Geneva. Analysts say these developments continue to underpin gold prices.
Nearly 20% surge this year
Gold prices have risen almost 20% since the start of the year. The metal has held above $5,000 per ounce after briefly retreating from its record high of $5,595 at the end of January.
Analysts attribute the renewed upward trend in gold prices to escalating geopolitical risks and mounting tariff uncertainty, both of which reinforce gold’s role as a safe-haven asset.
Tariff agenda fuels volatility
The administration of US President Donald Trump continues to push its tariff agenda, announcing plans to raise global tariffs to 15% “where appropriate”, intensifying tensions with trading partners.
The implementation of a general 10% tariff, following a Supreme Court ruling that overturned earlier Trump-era tariffs, has added further volatility to markets.
Christopher Wong, strategic analyst at Oversea-Chinese Banking Corp., said the gold market is experiencing “consolidation in both directions” as it absorbs geopolitical developments alongside shifts in Federal Reserve policy and movements in the US dollar.
By Thursday, the US dollar index had slipped 0.1%, extending losses from the previous session and offering additional support to gold prices.
Broader global tensions
Elsewhere, Cuban forces killed four people in a speedboat incident near Florida, further straining already tense US-Cuba relations.
Concerns over potential government interference in Federal Reserve policy have also boosted demand for gold, amid fears that the central bank’s independence could come under pressure.
As of 12:48pm in Singapore, gold gained 0.6% to $5,193.79 per ounce. Silver edged up 0.1% to $89.32, platinum advanced, while palladium declined.
Also read: Trump global tariffs take effect at 10%
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