Gold traded near $5,200 on Thursday as investors reacted to global political uncertainty and shifting trade policies. Market participants closely monitored developments in Washington and the Middle East, which influenced currency movements and safe-haven demand.
After Asian markets opened, the price of one ounce of gold rose by 0.5%. This increase pushed bullion close to the $5,200 level. Traders moved toward gold as concerns grew over U.S. tariff policies and the possibility that negotiations between Tehran and Washington could collapse.
Christopher Wong, an analyst at the Singapore-based financial advisory firm OCBC, said ongoing political uncertainty has weakened the U.S. dollar. As a result, gold prices gained momentum. He explained that unclear U.S. tariff policies created pressure on the dollar and encouraged investors to seek safer assets.
However, Wong noted that gold may be traded within a narrow range in the short term. According to him, markets are gradually absorbing geopolitical risks. If tensions ease, price volatility could decline in the coming sessions.
Meanwhile, technology giant Nvidia released its financial results for the final quarter of the year. The company’s earnings exceeded market forecasts. Initially, the strong results supported the U.S. dollar at the start of Asian trading. Investors responded positively to the earnings report, which signaled resilience in the technology sector.
Nevertheless, geopolitical concerns soon returned to the forefront. A few hours after markets opened, uncertainty over trade and diplomatic negotiations weighed again on the dollar. Consequently, gold regained strength and maintained its position near $5,200.
Overall, analysts believe that gold will remain sensitive to political headlines and currency fluctuations. If uncertainty persists, demand for the precious metal could stay firm in the near term.
