Gold's Sparkle: Safe-Haven Demand Amid Geopolitical Tensions

Gold prices remained largely stable on Friday, marking a consecutive seventh month of gains driven by U.S. tariff uncertainties and ongoing tensions between the U.S. and Iran. By 0837 GMT, spot gold had slightly dipped by 0.1% to $5,181.18 per ounce, but it witnessed a notable 6.5% increase in February. This significant growth has resulted in a staggering 58% gain over the past seven months.

In April, U.S. gold futures showed a minor increase of 0.1%, reaching $5,198.10 per ounce. At the same time, the benchmark 10-year yield dipped to a three-month low, making gold—a non-interest-bearing asset—a more attractive investment. ANZ analyst Soni Kumari attributes gold's support to both the uncertainty surrounding U.S. tariffs and the sensitive geopolitical climate with Iran. Recent indirect talks in Geneva between the U.S. and Iran about their nuclear dispute have shown progress, with further technical-level discussions set for Vienna next week.

While negotiations have not led to a definitive resolution, leaving geopolitical risks present without escalation, gold prices remain high. Linh Tran, a Senior Market Analyst at XS.com, notes that these conditions haven't yet catalyzed a sustained bullish trend for the metal. Friday also saw the U.S. implement a temporary 10% global import tariff, set to increase to 15% for select countries. Meanwhile, silver experienced a 1.7% rise to $89.87 per ounce, with spot platinum and palladium also witnessing significant hikes.