Gold prices surged above $5200 per ounce on Thursday, bolstered by a weakening U.S. Dollar and ongoing geopolitical tensions surrounding U.S.-Iran negotiations, according to market analysts.
The spot gold price rose 0.3% to $5,184.43 per ounce in early trading, nearing a three-week high, while April gold futures edged down 0.5% to $5,199.20 an ounce, indicating some profit-taking after recent gains. The dollar’s decline provided support, making gold more affordable for international buyers. Nvidia’s stronger-than-expected earnings also contributed to improved risk sentiment, indirectly benefiting gold as investors reassessed their portfolios.
A key driver of the recent rally remains the uncertainty surrounding the U.S.-Iran talks, currently underway in Geneva. Discussions are focused on resolving the long-running dispute over Iran’s nuclear program. President Trump recently stated that the Iranian government is working on missiles capable of reaching the United States, a claim that analysts suggest has increased safe-haven demand for gold.
Adding to market dynamics, U.S. Trade Representative Jamieson Greer indicated that tariff rates on some countries could increase to 15% or higher, up from the current 10%. This prospect of escalating trade tensions further fueled demand for gold as a hedge against economic uncertainty.
Interest rate expectations also play a significant role. Markets are currently anticipating three 25-basis-point rate cuts by the Federal Reserve this year, according to CME’s FedWatch tool. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors. Investors are now awaiting the release of weekly U.S. Jobless claims data for further clues about the Fed’s monetary policy path.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, identified immediate support for gold prices near ₹1…. (specific figure omitted due to lack of detail in provided sources).
Analysts at OANDA Group are closely watching Nvidia’s earnings report, viewing it as a critical test of market sentiment. A positive report could further boost risk appetite and potentially temper safe-haven demand for gold, while a disappointing result could reinforce the appeal of gold as a safe store of value. The price of gold has already breached the $5200/oz level, with bulls aiming for acceptance above this threshold before attempting further gains toward $5300.
The next round of U.S.-Iran talks in Geneva is scheduled to continue, with no immediate indication of a breakthrough.
