Gold Prices Edge Higher Amid Geopolitical Tensions and Tariff Uncertainty

Spot gold prices rose by 0.7% to $5,199.05 an ounce as of 4:10 p.m. in New York, driven by concerns over geopolitical tensions in the Middle East and the impact of US tariffs on global trade.

Key Drivers

• A buildup of US troops in the Middle East has kept global markets on edge, with Washington and Iran starting a third round of nuclear talks on Thursday.
• President Donald Trump has given the Islamic Republic a deadline of March 1-6 to strike a deal, threatening military action if it fails to do so.
• The Trump administration has also pushed ahead with moves to preserve his tariff agenda, with US Trade Representative Jamieson Greer stating that Trump will sign a directive raising his global tariff to 15% "where appropriate."

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Market Analysis

• According to Christopher Wong, a strategist at Oversea-Chinese Banking Corp, the latest moves in gold reflect "a repricing of fresh tariff uncertainty and geopolitical concerns."
• Two-way consolidation is likely, he said, as the market digests the latest news as well as Federal Reserve policy and moves in the dollar.
• A gauge of the US currency edged higher on Thursday after ending the previous session down 0.2%.

Year-to-Date Performance

• Gold has gained 20% this year, finding a footing back above $5,000 an ounce after an abrupt, two-day pullback from a record high of about $5,595 in late January.
• The ongoing geopolitical and trade tensions have restored impetus to a multiyear bull run, reinforcing the dollar debasement trade whereby investors move away from the US currency and Treasuries.

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