Gold prices edged up on Thursday as uncertainties surrounding US tariff policies increased the attractiveness of safe havens for precious metals, while investors are waiting for more details about the US-Iran talks scheduled to take place during the day.
Spot gold rose 0.4% to 5.181.79 USD/ounce in this afternoon's trading session. Previously, this precious metal had hit its highest level in more than three weeks on Tuesday. Meanwhile, US gold futures for April delivery fell 0.4% to 5,206.80 USD/ounce.
The weakening USD makes goods valued in the greenback cheaper for those who hold other currencies.
“Prolonged tensions between Iran and the US, along with the global economy-causing uncertainty related to President Donald Trump's tariffs, are supporting the upward trend of gold,” said Carlo Alberto De Casa, independent analyst at Swissquote banking group.
US Special Envoy Steve Witkoff and President Trump's son-in-law Jared Kushner are expected to meet with the Iranian delegation to conduct the third round of nuclear talks later in the day in Geneva.
In his State of the Union address on Tuesday, Mr. Trump presented arguments about the possibility of attacking Iran, affirming that he would not allow a country he described as the world's largest terrorist donor to possess nuclear weapons.
Gold, which does not yield yields, is often seen as a safe haven for value in the context of geopolitical and economic instability.
According to US Trade Representative Jamieson Greer, US tariffs on some countries will increase to 15% or higher, from the newly applied 10%, but did not specify which specific trading partners or provide further details.
Gold prices hit a record high of 5,594.82 USD/ounce on January 29 and have increased by about 20% since the beginning of the year.
The global gold craze does not seem to have ended yet. In general, market sentiment remains positive with strong buying power from Asia and central banks," Mr. De Casa added.
Regarding economic data, investors are waiting for weekly US jobless claims data, expected to be released later in the day.
On the other precious metal market, spot silver fell 1.4% to $88.18/ounce. Platinum rose 0.9% to $2,308.11/ounce, while palladium rose 0.3% to $1,800.14/ounce.
