Gold edges higher amid ongoing US-Iran standoff

Gold prices ticked higher after the United States and Iran agreed to extend negotiations over Tehran’s nuclear program, while a significant U.S. military build-up in the Middle East kept investors cautious about the risk of conflict.

Bullion traded near $5,200 an ounce, after gaining 0.4% in the previous session, and remained on track for a weekly advance, News.Az reports, citing Bloomberg.

Washington and Tehran are set to resume discussions next week after what mediator Oman described as “significant progress” during talks on Thursday, leaving room for continued diplomacy. However, a person familiar with the U.S. position said American officials were disappointed with the pace of progress.

Tensions between the two countries have intensified in recent months, with President Donald Trump ordering the largest U.S. military deployment to the Middle East since 2003. The standoff over Iran’s nuclear activities has included sharp rhetoric from both sides, reinforcing demand for safe-haven assets such as gold.

The precious metal has climbed roughly 20% this year, recovering above $5,000 an ounce after retreating from a record high in late January. Gold is on course for its seventh consecutive monthly gain — a streak that would mark its longest run since 1973. Ongoing geopolitical risks, trade frictions, concerns about U.S. dollar debasement, and questions over the Federal Reserve’s independence have all contributed to the sustained rally.

Investor interest has also strengthened, with inflows into gold-backed exchange-traded funds this week offsetting earlier outflows seen at the start of the month.

Market participants are now looking for signals on the Federal Reserve’s next policy move. Chicago Fed President Austan Goolsbee said Thursday that several rate cuts could be possible this year if inflation continues to ease. Meanwhile, Fed Governor Stephen Miran reiterated calls for a full percentage-point rate reduction in 2026, despite recent data pointing to resilience in the labor market.

Spot gold rose 0.2% to $5,192.74 an ounce as of 1:36 p.m. in Singapore. Silver gained 1.7% to $89.80, platinum advanced 5.1%, and palladium climbed nearly 3%. The Bloomberg Dollar Spot Index slipped 0.1%, reflecting a slight weakening of the U.S. currency.

News.Az 

By Nijat Babayev