Gold Gains on Softer Dollar and Geopolitical Jitters as Markets Eye Tariffs and Iran Talks

BY COMFORT OGBONNA

Gold prices moved higher on Thursday, supported by a weaker U.S. dollar and renewed safe-haven demand as investors navigated uncertainty surrounding U.S. tariff policy and ongoing negotiations between Washington and Tehran.

Spot gold rose 0.5% to $5,195.99 per ounce as of 0639 GMT, after touching its highest level in more than three weeks on Tuesday. U.S. gold futures for April delivery slipped 0.2% to $5,213.50, reflecting some near-term profit-taking following the recent rally.

Analysts said the metal’s price action signals a reassessment of risks tied to trade policy, geopolitics and monetary outlook. Christopher Wong, a strategist at OCBC, said markets are repricing fresh tariff uncertainty, geopolitical concerns and a softer dollar environment. He added that two-way consolidation remains likely in the near term as investors digest shifting headlines on trade measures, currency moves and Federal Reserve policy expectations.

The dollar began the session on weaker footing after stronger-than-expected earnings from Nvidia boosted overall investor confidence and appetite for risk assets. At the same time, traders awaited further clarity on new U.S. tariffs on imports. A softer greenback typically makes dollar-denominated gold more attractive to buyers using other currencies, supporting demand.

U.S. Trade Representative Jamieson Greer said Wednesday that tariff rates for certain countries would rise to 15% or higher from the newly imposed 10%, though he did not specify which trading partners would be affected. The lack of detailed guidance has left markets wary of potential trade disruptions and retaliatory measures.

Expectations for monetary easing have also underpinned bullion. According to the CME FedWatch Tool, investors are currently pricing in three 25-basis-point interest rate cuts by the Federal Reserve this year. Lower interest rates tend to support gold, which does not yield interest, by reducing the opportunity cost of holding the metal.

Market participants were also awaiting weekly U.S. jobless claims data for additional clues about the strength of the labor market and the likely path of Fed policy. Any signs of economic softening could reinforce bets on rate cuts and provide further momentum for precious metals.

Geopolitical tensions remain a key driver. The United States and Iran are scheduled to hold another round of talks in Geneva aimed at resolving their long-running nuclear dispute and averting potential military action following a significant U.S. military buildup in the region. Uncertainty surrounding the outcome of those discussions has added to gold’s appeal as a hedge against instability.

In other precious metals, spot silver edged 0.1% higher to $89.48 per ounce after hitting a three-week high in the previous session. Analysts at Deutsche Bank said silver and other “white metals” have resumed outperforming gold, supporting their forecast for silver to reach $100 per ounce by year-end based on a gold-silver ratio of 60.

Spot platinum rose 0.8% to $2,305.20 per ounce, while palladium slipped 0.1% to $1,793.84. Both metals had also climbed to three-week highs on Wednesday, reflecting broader strength across the precious metals complex as investors balance risk appetite with lingering macroeconomic and geopolitical uncertainty.