Gold prices rose in Asian trade on Tuesday but remained in a tight trading range as markets sought more cues on a de-escalation in the U.S.-Israel war with Iran.
Bullion rose amid a broader improvement in risk appetite as U.S. President Donald Trump claimed that the Iran conflict will end soon, and that Washington was also considering measures to help temper the spike in oil prices.
Spot gold rose 0.8% to $5,175.48 an ounce by 01:55 ET (05:55 GMT), while gold futures rose 1.6% to $5,184.79/oz. Spot prices rose marginally on Monday after logging wild swings during the session.
Get more key price insights on gold by subscribing to InvestingPro
Gold remains in $5,000-$5,200 range amid mixed haven demand Gold remained squarely in a $5,000-$5,200/oz trading range established over the past week, as traders parsed a storm of uncertainties facing the global economy.
While the Iran conflict did spur haven demand for gold, its gains were tempered by concerns over the inflationary effects of the conflict, which could in turn elicit more hawkish stances from major global central banks.
ANZ analysts noted that gold’s rally this year was hit with profit-taking as investors also sought liquidity amid a deep rout in global equity markets.
Other precious metals advanced on Tuesday, with spot silver up nearly 6% at $89.1915/oz. Spot platinum rose 0.7% to $2,201.48/oz.
Among industrial metals, LME copper futures rose 1.3% to $13,095.30 a tonne.
Trump talks Iran de-escalation, oil supply relief Risk appetite improved on Tuesday, while oil prices fell after Trump said on several occasions on Monday that an end to the Iran war was close.
He also touted potential measures to help limit supply disruptions from the conflict, including temporarily waiving sanctions on some oil sellers, most notably Russia.
But Trump did not provide a clear timeline on when such a de-escalation will happen, while also maintaining a largely hawkish rhetoric against Tehran. Trump warned the Islamic republic of dire consequences if it blockaded the Strait of Hormuz.
"We will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them," Trump said.
Iran rejected Trump’s claims, and said it will continue to block the Strait of Hormuz until U.S. and Israeli attacks on Tehran stop.
The war entered its eleventh consecutive day on Tuesday, with hostilities in the Middle East showing few signs of stopping.
A prolonged conflict is expected to continue underpinning gold prices, with safe haven demand likely to remain high amid increasing inflationary shocks from the oil market.
