Gold Prices Surge Amid U.S.-Iran Tensions and Tariff Uncertainties

Gold prices edged higher due to U.S. tariff policy uncertainties and anticipated U.S.-Iran talks. Spot gold climbed to nearly a three-week high, while U.S. gold futures saw a slight dip. Geopolitical tensions, including potential U.S. action on Iran, spurred interest in gold as a safe haven.

Gold prices increased on Thursday, spurred by uncertainty surrounding U.S. tariff policies, enhancing the metal's safe-haven appeal. Investors eagerly anticipated details from a U.S.-Iran discussion scheduled later that day. Spot gold rose by 0.1% to $5,174.07 per ounce at 1144 GMT, following a nearly three-week peak on Tuesday.

The U.S. dollar eased, making gold more accessible for foreign holders, though U.S. gold futures for April delivery slipped by 0.7% to $5,190.30. Carlo Alberto De Casa from Swissquote indicated that the ongoing U.S.-Iran tensions and global economic uncertainties, driven by Trump's tariffs, act as a bullish catalyst for gold.

Geopolitical issues were at the forefront as U.S. envoy Steve Witkoff and Jared Kushner prepared for nuclear talks with Iran in Geneva. Trump, in his State of the Union address, cautioned against allowing Iran, termed the leading sponsor of terrorism, to acquire nuclear weapons. Meanwhile, substantial gold purchases are emerging from Asia and central banks, supporting the metal's enduring appeal as a valuable hedge.