Gold Prices Near $5,200, What's Next?
Gold prices continued their rally on Thursday, as market participants weighed geopolitical tensions in the Middle East and the impact of US tariffs on global trade. Gold moved toward the $5,200/oz area, extending a rally that has reached nearly 6% in the past six sessions, as global markets remained wary of risk-on headlines.
Key support came from increased US pressure on Iran ahead of the latest round of nuclear talks on Thursday in Geneva. Washington imposed sanctions on more than 30 entities accused of supporting Iran's oil and arms sales. This move, coupled with a US troop buildup in the region, kept the geopolitical risk premium high—conditions that typically support demand for safe-haven assets like gold.
On the trade front, uncertainty increased after a 10% global tariff went into effect on Tuesday, following a US Supreme Court ruling that invalidated the previous "reciprocal" tariff scheme. US Trade Representative Jamieson Greer said President Donald Trump would sign a directive to increase global tariffs to 15% "if appropriate," prompting the market to reassess the potential for increased tariffs on trading partners.
Some analysts believe that the current gold price movement reflects a price adjustment due to tariff uncertainty and new geopolitical risks. While the trend remains positive, gold has the potential to enter a two-way consolidation phase as market participants must also consider the direction of Fed policy and the movement of the dollar. The Bloomberg Dollar Index fell slightly, which also gives the precious metal room to maintain its highs.
Overall, gold has risen nearly 20% this year and returned above $5,000/oz after a sharp correction from a record $5,595 in late January. Beyond tariffs and geopolitics, concerns about potential government intervention in Fed policy have also strengthened the hedge narrative. As of 9:19 a.m. Singapore time, spot gold prices rose 0.5% to $5,188.76/oz; silver strengthened 0.9% to $89.99, while platinum and palladium also moved higher.
Source: Newsmaker.id (asd)
