Gold prices edged up in Asian trading on Tuesday, though the metal stayed within a narrow range as investors continued to look for clearer signs of a potential de-escalation in the U.S.–Israel conflict with Iran.
Bullion gained alongside a broader improvement in market sentiment after U.S. President Donald Trump suggested the Iran conflict could end soon and indicated that Washington was considering measures to ease the recent surge in oil prices.
Spot gold rose 0.8% to $5,175.48 an ounce by 01:55 ET (05:55 GMT), while gold futures increased 1.6% to $5,184.79 an ounce. Spot prices had closed Monday slightly higher after experiencing sharp swings throughout the session.
Gold holds in $5,000–$5,200 range as haven demand stays mixed
Gold continued to trade within the $5,000–$5,200 per ounce band seen over the past week, as investors weighed a mix of geopolitical risks and economic uncertainty.
While the conflict with Iran has driven some safe-haven demand for gold, the metal’s gains have been limited by concerns that rising energy prices could fuel inflation and prompt major central banks to maintain tighter monetary policy.
Analysts at ANZ said that gold’s rally earlier this year had also been tempered by profit-taking as investors sought liquidity during a sharp sell-off in global equity markets.
Other precious metals also posted gains on Tuesday, with spot silver jumping nearly 6% to $89.1915 per ounce. Spot platinum rose 0.7% to $2,201.48 per ounce.
Among industrial metals, copper futures on the London Metal Exchange advanced 1.3% to $13,095.30 per tonne.
Trump points to possible de-escalation and oil supply measures
Risk appetite improved on Tuesday while oil prices declined after Trump said several times on Monday that the war with Iran could soon draw to a close.
He also highlighted potential steps to mitigate supply disruptions from the conflict, including temporarily easing sanctions on certain oil exporters, most notably Russia.
However, Trump did not outline a specific timeline for any de-escalation and continued to strike a largely hawkish tone toward Tehran. He warned that Iran would face severe consequences if it attempted to block the Strait of Hormuz.
“We will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them,” Trump said.
Iran dismissed Trump’s statements and said it would keep blocking the Strait of Hormuz until U.S. and Israeli attacks on Tehran come to an end.
The conflict entered its eleventh straight day on Tuesday, with tensions in the Middle East showing little sign of easing.
A prolonged confrontation is expected to continue supporting gold prices, as demand for safe-haven assets remains elevated amid the risk of inflation shocks stemming from oil markets.
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