Gold Rises, Market Awaits Negotiation Resumption & Tariff Direction
Gold prices were mixed on Thursday (February 26) after the third round of nuclear talks between Washington and Tehran concluded in Switzerland. Despite signs of diplomatic progress, market anxiety regarding US tariff policies maintained demand for safe-haven assets.
In recent trading, spot gold rose 0.6% to $5,196.23 per ounce, while US gold futures fell 0.3% to $5,212.64 per ounce. This divergence reflects the market still weighing a combination of geopolitical headlines, trade risks, and monetary policy expectations.
Market participants are monitoring diplomatic developments after US and Iranian officials concluded the third round of discussions in Geneva regarding Tehran's nuclear program. Oman, the mediator, stated that there had been "significant progress" and added that talks would "soon resume after consultations" in their respective capitals. However, the market believes any sign of a deterioration or escalation in tensions still has the potential to increase gold demand.
On the trade policy side, investors are also assessing the impact of US tariffs following a Supreme Court ruling that changed the legal basis for some trade measures. The imposition of new global levies of up to 15% adds to uncertainty about the global trade outlook and is a supporting factor for gold.
On the data front, US initial jobless claims edged up: initial jobless claims increased by 4,000 to 212,000 (seasonally adjusted) for the week ending February 21. Gold has remained solid this year due to a combination of geopolitical tensions, central bank buying, and portfolio diversification flows. ING believes gold has recovered more than half of its losses after a sharp sell-off at the end of last month, and emphasizes that geopolitical risks—particularly those related to Iran—remain a key upside factor for gold as a hedge against shocks.
Source: Newsmaker.id
