Gold Prices Steady Amid US Tariffs & Iran Tensions – 7-Month Gain Streak Continues
Gold prices held steady on Friday, poised for a seventh consecutive month of gains, as investors weighed escalating trade tensions and the ongoing, yet uncertain, trajectory of U.S.-Iran nuclear negotiations. Spot gold traded at $5,181.18 per ounce by 08:37 GMT, having risen 6.5% in February alone, extending a seven-month rally that has seen the precious metal increase in value by 58%.
The stability comes after indirect talks between the United States and Iran in Geneva on Thursday, facilitated by Omani mediators, reportedly yielded some progress in resolving their long-standing dispute over Iran’s nuclear program. Further technical-level discussions are planned for next week in Vienna, though the outcome remains far from assured. According to Reuters, investors are remaining on the sidelines awaiting concrete signals from these talks.
The renewed uncertainty surrounding U.S. Trade policy is also bolstering gold’s appeal as a safe haven asset. The United States began implementing a temporary 10% global import tariff on Tuesday, a move that could escalate into a 15% tariff for certain countries, as stated by U.S. Trade Representative Jamieson Greer. This policy shift has injected volatility into global markets, prompting a flight to safety.
“There are two things (supporting gold). First is the tariff uncertainty which is there in the market right now, and the Iran and the US situation,” explained ANZ analyst Soni Kumari.
The benchmark 10-year Treasury yield’s decline to a three-month low further supported gold prices, reducing the opportunity cost of holding the non-yielding asset. Meanwhile, data released on the labor front showed a slight increase in Americans filing for unemployment benefits, though the unemployment rate remained stable in February.
Other precious metals also saw gains. Spot silver rose 1.7% to $89.87 per ounce, tracking towards a 6.2% monthly increase. Platinum climbed 4.1% to $2,365.33 per ounce, reaching a four-week high, whereas palladium increased by 2.1% to $1,821.28.
Despite the recent gains, analysts remain cautious. Linh Tran, Senior Market Analyst at XS.com, noted that “the latest rounds of talks have not produced a clear outcome, leaving geopolitical risks present but not escalating. This has kept gold at elevated levels, though it has not yet provided sufficient momentum to establish a sustainable bullish trend.” As reported by the Economic Times, technical analysis from Reuters suggests gold is currently trading in a neutral range between $5,158 and $5,201, with a potential upward bias towards $5,243 should it break through this range.
The Federal Reserve’s future monetary policy also remains a factor. Markets currently anticipate three 25-basis-point rate cuts this year, according to CME’s FedWatch Tool, though growing optimism about the U.S. Economy could temper those expectations. The next steps in both the U.S.-Iran negotiations and the implementation of the new tariff policies will be closely watched by investors in the coming weeks.