Gold Prices Near One-Month High, Extend Seventh Consecutive Monthly Gain

Gold Prices Rise to Near One-Month High Amid Geopolitical Tensions

Spot gold rose 0.8% to $5,230.56 an ounce as of 01:38 p.m. ET (1838 GMT) on Friday, reaching its highest level since January 30. This marks the seventh consecutive month of gains for the precious metal.

U.S. gold futures for April delivery settled 1% higher at $5,247.90, while spot silver rose 4.8% to $92.60 an ounce. Spot platinum climbed 3.4% to $2,350.34 an ounce, and palladium fell 0.5% to $1,775.31.

The rally in gold prices is attributed to geopolitical tensions following the extension of nuclear talks between the United States and Iran. The talks made progress, but a breakthrough was not achieved, leaving the possibility of a U.S. military operation and a subsequent flight to safety.

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The U.S. 10-year Treasury yields slipped to a three-month low, making non-yielding gold more attractive and lowering its opportunity cost. According to Phillip Streible, chief market strategist at Blue Line Futures, gold's next likely upside target is $5,450, with key support near $5,120.

Market indicators suggest a 42% chance of a 25-basis-point U.S. Federal Reserve rate cut in June, as per the CME FedWatch tool. Meanwhile, China's net gold imports via Hong Kong in January rose by 68.7% from December, driven by the country's central bank removing risk-reserve rules for forex forwards, encouraging more dollar buying.

Key metrics:

• Spot gold: $5,230.56 an ounce (up 0.8%)
• U.S. gold futures (April delivery): $5,247.90 (up 1%)
• Spot silver: $92.60 an ounce (up 4.8%)
• Spot platinum: $2,350.34 an ounce (up 3.4%)
• Palladium: $1,775.31 an ounce (down 0.5%)
• U.S. 10-year Treasury yields: three-month low
• China's net gold imports via Hong Kong (January): up 68.7% from December

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