Gold Continues Monthly Uptrend Amid Ongoing US-Iran Diplomatic Developments

Gold and Silver Prices Rise Amid Ongoing Geopolitical Tensions

Gold prices surged above $5,200 an ounce, capping a monthly gain as markets remain on edge due to a US military buildup in the Middle East. The price increase is also attributed to ongoing geopolitical and trade tensions, as well as concerns about the Federal Reserve's independence.

Washington and Tehran are set to continue negotiations next week after making "significant progress" on Thursday, according to mediator Oman. However, officials from the US position left the talks disappointed with the progress. Iran's regular and unexplained activity at bombed uranium-enrichment sites may complicate talks with the US over Tehran's nuclear ambitions.

Gold has gained more than 20% so far this year, finding a footing back above $5,000 an ounce after an abrupt pullback from a record high in late January. Bullion registered its seventh straight monthly gain, the longest streak since 1973.

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Investors have also been adding to their holdings in gold-backed exchange-traded funds. Inflows this week through Thursday more than offset selloffs seen earlier this month. Spot gold rose 1.5% to $5,263.39 an ounce as of 3:52 p.m. in New York. Silver rose 6.2% to $93.80 an ounce, while platinum and palladium both advanced.

The Bloomberg Dollar Spot Index, a gauge of the US currency, was down less than 0.1%. The producer price index increased 0.5%, while an underlying gauge that excludes food and energy advanced by the most since July, boosting the case for the Fed to hold off from rapid rate cuts.