Gold Holds Above $5,180 amid Trade Uncertainty
By Praisebell Rosemond Larbi
Gold prices remained resilient above $5,180 per ounce on Thursday, hovering near a four-week high as investors sought safety amid rising geopolitical tensions and global economic uncertainty.
The precious metal’s steady performance reflects heightened caution across financial markets, driven largely by developments in the Middle East and evolving trade policies in the United States. Reports of increased U.S. troop presence in the region ahead of anticipated nuclear discussions in Geneva have intensified market anxiety, particularly as tensions involving Iran continue to escalate.
Additional pressure stems from fresh U.S. sanctions targeting Iranian entities linked to oil exports and weapons networks. These measures have further strained relations and contributed to uncertainty across global energy and commodity markets. In such an environment, gold continues to benefit from its traditional role as a safe-haven asset, attracting investors seeking to hedge against volatility.
Trade policy uncertainty has also played a significant role in supporting gold prices. Under the administration of Donald Trump, plans to increase tariffs to 15 percent in selected sectors, following an earlier 10 percent levy have raised concerns about inflationary pressures and potential disruptions to global supply chains. The policy shift comes after a ruling by the Supreme Court of the United States that struck down previous reciprocal tariff measures, prompting a recalibration of trade strategy.
Monetary policy expectations are equally influencing market sentiment. Persistent inflation concerns have led investors to push back expectations for the next interest rate cut by the Federal Reserve to September. Higher-for-longer interest rate expectations typically weigh on non-yielding assets like gold; however, in this case, geopolitical and economic risks are outweighing those pressures, sustaining demand.
Global equity markets have responded with caution, showing signs of weakness as capital flows shift toward safer assets. Analysts note that this trend underscores a broader risk-off sentiment dominating investor behavior.
With geopolitical tensions unresolved, trade policies in flux, and inflation concerns lingering, gold is expected to remain elevated in the near term. Market watchers believe the metal could continue to trade near its recent highs, supported by persistent uncertainty and strong safe-haven demand.
