Global precious metals markets saw mixed movements today, with gold prices their upward trend to approach the $5,200 per ounce mark, supported by increased investor demand for safe-haven assets. This rise comes amidst uncertainty surrounding the global economic and political landscape, particularly regarding the trajectory of US trade policies and geopolitical tensions in the Middle East.
Gold and currency performance in global markets
In the latest spot trading, gold rose 0.2% to $5,182.18 an ounce, hovering near its highest level in three weeks. Meanwhile, U.S. gold futures (April delivery) edged down 0.5% to settle at $5,198.70.
This rise reinforces gold's status as the traditional "safe haven" that investors turn to during periods of turmoil, as markets cautiously await details of the US-Iranian talks scheduled for today, in addition to the uncertainty surrounding the tariffs threatened by US President Donald Trump, which could reshape the international trade map.
Variation in the performance of other precious metals
Unlike gold, silver faced selling pressure, causing it to decline by 2.2% in spot trading to $87.43 per ounce. As for the platinum group metals, platinum remained stable at $2,286.44 per ounce, while palladium fell by 1.3% to $1,772.25.
Economic factors and the impact of the dollar
The decline in the US dollar index played a pivotal role in supporting gold prices; a weaker US currency makes dollar-denominated commodities, such as gold, less expensive and more attractive to buyers holding other currencies. This inverse relationship between the dollar and precious metals is a fundamental economic principle currently governing market movements.
Commenting on these developments, Carlo Alberto De Casa , an economic analyst at the Swissquote banking group, pointed out that the continued geopolitical tension between Washington and Tehran, along with the uncertainty surrounding the future of the global economy under the new customs policies, represent a "positive catalyst" that supports the continued rise of gold.
A historical and future perspective
It is worth noting that gold reached an unprecedented record high on January 29th, hitting $5,594.82 per ounce. Data indicates that the precious metal has gained over 20% since the beginning of the year, reflecting strong investment demand for it as a hedge against inflation and financial market volatility. Experts believe that the continuation of these factors could push gold to test new resistance levels in the near term, especially if economic data continues to support expectations of a global growth slowdown or if political tensions persist.
