Investing.com-- Gold prices rose sharply in Asian trade on Thursday, as safe haven demand was boosted by heightened concerns over military action with Iran, while President Donald Trump’s comments on trade tariffs elicited a risk-averse reaction.
Bullion prices were already sitting on some gains this week amid increased uncertainty over U.S.-China trade talks. While the talks appeared to have yielded some progress, a lack of clear details on the agreement kept investors largely risk-averse.
Spot gold rose 0.6% to $3,374.94 an ounce, while gold futures for August rallied 1.5% to $3,394.60/oz by 01:24 ET (05:24 GMT).
Gold, metal prices buoyed by haven demand, dollar weakness
Heightened tensions in the Middle East, especially between Iran and Israel, were a key support point for gold, after several reports said Israel was preparing to attack Iran if nuclear talks with the U.S. through.
On Wednesday, Trump confirmed that the U.S. was also pulling out personnel from Iraq and other Middle Eastern countries, amid fears of more military action. Other reports showed Iranian ministers threatening to strike U.S. bases in the region in the event of a conflict.
Headlines on Iran came just days after Trump signaled that he was losing confidence in nuclear talks with Tehran, especially after he said that the country will not be allowed to enrich any more uranium.
Still, U.S. and Iranian officials are set to hold more talks over the weekend.
On the trade front, risk appetite was spooked by Trump stating that he will send letters outlining his trade tariff plans to major economies within the next two weeks, dashing hopes for more U.S. trade deals. So far, the U.S. has only signed a trade deal with the UK, and announced a trade framework with China this week, without providing any major details on the latter.
Heightened uncertainty weighed on the dollar and benefited broader metal prices. Platinum futures outperformed, rising 0.8% to an over four-year high of $1,251.65/oz, while silver futures rose 0.7% to $36.515/oz, remaining close to a recent 13-year peak.
Among industrial metals, benchmark copper futures on the London Metal Exchange rose 0.5% to $9,699.70 a ton, while U.S. copper futures rose 0.4% to $4.8242 a pound.
Platinum rally short-lived, to fall back in trading range- Goldman Sachs
Goldman Sachs analysts said that a recent rally in platinum prices, which saw the white metal break out of a nearly decade-long trading range, was likely to be short-lived.
Platinum has been on a tear since late-May, with its initial rally sparked by a bullish industry report. This in turn drove up speculation over sluggish supply and increased demand, driving more long positions on the metal.
Recent gains saw platinum trading up 37.3% so far in 2025, outpacing a 28.6% rise in gold.
GS expects platinum to fall back within a $800 to $1,150/oz trading range, citing slower Chinese consumer demand for platinum jewellery. Softening demand for emissions controls in the automobile industry, amid rising electric vehicle adoption, along with strong South African production, are also expected to weigh on platinum prices.