Gold prices were steady in Asian hours on Friday, with bullion poised for robust monthly gains driven by safe-haven flows amid geopolitical and economic uncertainty.
Market moves
Spot gold increased 0.2% to $5,194.02 an ounce by 21:14 ET (02:14 GMT), while gold futures rose 0.3% to $5,211.41/oz. The metal was trading up 6.7% in February, having recouped a large portion of losses seen at the start of the month after a short-lived speculative rally unwound.
Drivers of demand
Traders said demand for safe havens has been underpinned by a mix of heightened geopolitical tension and uncertainty about economic growth. Disruptions in U.S. trade policy, together with concerns about cooling growth in the world’s largest economies, have left market participants biased toward assets perceived as safer stores of value, helping bullion claw back much of its late-January slide.
Geopolitical friction involving Iran was singled out as an important factor supporting prices. Washington deployed additional ships to the Middle East and warned of possible military action if Tehran did not accept a nuclear deal. Recent talks between Iran and the U.S. ended without a deal, but both sides committed to further discussions in the coming weeks, a development that produced some cautious optimism about a potential future agreement.
U.S. trade policy and market uncertainty
Heightened uncertainty about the U.S. economic outlook also contributed to bullion’s rise. A U.S. Supreme Court ruling struck down most of President Donald Trump’s trade tariffs. In response, the president announced new tariffs under a different legal framework and threatened additional levies, moves that left markets uneasy about the potential for further economic disruption from tariff actions.
Performance of other precious metals
Other metals rallied on the session and were also on track for strong monthly performances. Spot silver climbed 1.7% to $89.7785/oz and was up 6% in February. Spot platinum jumped 3% to $2,351.63/oz and was higher by 8.4% this month.
Note: This report focuses on market movements and the factors cited by traders and observers; it reflects details reported on prices, geopolitical developments and trade policy actions without projecting outcomes beyond those cited.