The precious metal rose amid a general improvement in risk appetite, as US President Donald Trump stated that the conflict with Iran will soon end.
Gold prices rose in Asian trading on Tuesday, recovering from a volatile session as market attention remained focused on the de-escalation of the US-Israel war with Iran and potential disruptions to oil supplies.
The precious metal rose amid a general improvement in risk appetite, as US President Donald Trump stated that the conflict with Iran will soon end and that Washington is also considering measures to curb the surge in oil prices.
Spot gold rose 0.9% to $5,180.95 per ounce by 1:58 a.m. (1:58 a.m. Moscow time), while gold futures rose 1.7% to $5,190.86 per ounce. Spot prices rose marginally on Monday after sharp fluctuations during the session.
Iran responded to Trump's comments, saying it would decide for itself when the war would end. The country responded to US and Israeli attacks by launching attacks on several surrounding Middle Eastern countries, as well as attacking ships in the Strait of Hormuz.
But despite this week's gains, gold remained in the $5,000-$5,200 per ounce trading range established over the past week as traders weighed the flurry of uncertainties facing the global economy.
While the conflict with Iran did spur demand for gold as a safe haven, its gains were tempered by concerns about the conflict's inflationary implications, which, in turn, could prompt a more hawkish stance from the world's major central banks.
ANZ analysts noted that gold's rally this year has been met with profit-taking as investors also sought liquidity amid a deep slump in global stock markets.
Other precious metals rose on Tuesday, with spot silver rising nearly 6% to $89.1915 per ounce. The spot price of platinum rose 0.7% to $2,201.48 per ounce.
Among industrial metals, LME copper futures rose 1.3% to $13,095.30 per tonne.