Gold prices held steady above $5,180 per ounce on Thursday, extending gains from the previous session and hovering near a four-week high. Investors were cautious as global markets weighed escalating geopolitical tensions and uncertainties surrounding U.S. trade policies.
The continued buildup of U.S. troops in the Middle East ahead of upcoming nuclear talks in Geneva added to market unease, while sanctions targeting Iranian entities involved in oil and weapons exports increased pressure on the region. These developments have reinforced gold’s appeal as a safe-haven asset during uncertain times.
At the same time, the Trump administration’s trade strategy contributed to investor caution. Plans to raise tariffs to 15% in certain areas, following a 10% levy that was implemented after the Supreme Court struck down earlier reciprocal tariffs, have raised concerns about potential disruptions to global trade and inflation.
Monetary policy also played a role in gold’s strength. Persistent inflation concerns led traders to delay expectations for the Federal Reserve’s next rate cut until September, supporting demand for the non-yielding metal.
Markets reflected this cautious mood, with equity indexes showing signs of pressure as investors shifted toward safe-haven assets. With geopolitical tensions, trade uncertainties, and inflation worries remaining, gold prices are likely to stay elevated in the near term, maintaining their position near recent multi-week highs.
