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.
