Gold Rises but Stays Rangebound as Markets Watch for Iran War De-escalation
Gold prices climbed in Asian trade on Tuesday, but remained stuck in a tight range as investors looked for clearer signals that the U.S.-Israel war with Iran is moving toward de-escalation. Bullion firmed alongside an improvement in broader risk appetite after U.S. President Donald Trump said the conflict could end soon and suggested Washington was considering steps to cool the spike in oil prices. Spot gold rose 0.8% to $5,175.48 an ounce, while gold futures gained 1.6% to $5,184.79/oz after a choppy Monday session marked by sharp intraday swings.
Despite renewed safe-haven interest, gold held within the $5,000-$5,200/oz band that has defined trading over the past week, reflecting competing forces on investor positioning. The Iran conflict has supported demand for defensive assets, but those gains have been capped by concerns that higher energy costs could reignite inflation and push major central banks toward a more hawkish stance. ANZ analysts said gold’s year-to-date rally has faced profit-taking, while some investors have also used the metal as a source of liquidity during a deep selloff in global equities. Other precious metals advanced, with spot silver jumping nearly 6% to $89.1915/oz and spot platinum up 0.7% to $2,201.48/oz. In industrial metals, LME copper futures rose 1.3% to $13,095.30 a tonne.
Risk sentiment improved and oil prices retreated after Trump repeated on Monday that an end to the Iran war was near. He also flagged possible measures aimed at limiting supply disruptions, including the idea of temporarily easing sanctions on certain oil sellers, with Russia cited as a notable beneficiary. However, Trump offered no clear timeline for de-escalation and maintained a hardline posture toward Tehran, warning of severe consequences if Iran blockaded the Strait of Hormuz. Iran rejected Trump’s claims and said it would continue to block the Strait until U.S. and Israeli attacks on Tehran stop.
The conflict entered its eleventh consecutive day on Tuesday, with few signs of a quick resolution. A prolonged war would likely continue to underpin gold through elevated safe-haven demand, especially if oil-market disruptions renew inflation shocks and keep interest-rate expectations restrictive. Markets will be watching for tangible steps toward de-escalation, developments around the Strait of Hormuz, and the direction of oil, the dollar and rate pricing—all of which are shaping gold’s near-term range.
Source : Newsmaker.id
