Gold prices were little changed during Asian trading hours on Friday and remained on track for solid monthly gains, supported by persistent safe-haven demand amid heightened geopolitical risks and ongoing economic uncertainty.
Concerns surrounding U.S. trade policy shifts, alongside worries about slowing growth across major global economies, encouraged investors to favor defensive assets, allowing bullion to recover most of the losses recorded in late January.
Fresh geopolitical tensions also supported demand after conflict erupted between Pakistan and Afghanistan, although the fighting has so far remained contained within the region.
Gold poised for strong February gains, recovers January slide
Spot gold held steady at $5,187.18 per ounce as of 00:12 ET (05:12 GMT), while April gold futures edged up 0.2% to $5,203.61 per ounce.
The metal was up roughly 6.7% for February, rebounding significantly from early-month lows after a speculative rally unwound rapidly at the start of the period.
Spot prices had dropped to around $4,600 per ounce in early February before staging a recovery.
Escalating tensions involving Iran were a major catalyst for gold’s rebound, as the United States increased its military presence in the Middle East and warned of possible action if Tehran rejected a nuclear agreement.
Negotiations between Washington and Tehran ended this week without a deal, though both sides agreed to continue discussions, raising hopes that a future agreement could still be reached.
Uncertainty surrounding the U.S. economic outlook also boosted gold prices, particularly after a U.S. Supreme Court decision struck down most of President Donald Trump’s trade tariffs.
Trump subsequently announced plans to introduce new tariffs under an alternative legal framework and warned of additional levies, keeping markets cautious about potential economic disruptions.
Other precious metals also advanced on Friday and were heading for strong monthly performances. Spot silver climbed 1.7% to $89.7785 per ounce, marking a 6% gain for February, while spot platinum jumped 3% to $2,351.63 per ounce and was up 8.4% for the month.
Copper posts modest February gains as markets watch China demand
Among industrial metals, copper prices moved slightly higher on Friday and were on track for modest monthly gains as traders awaited clearer signals from China, the world’s largest importer of the metal.
Benchmark copper futures on the London Metal Exchange rose 0.2% to $13,333.0 per ton and were up about 1.2% for the month.
COMEX copper futures gained 0.4% to $6.0480 per pound, bringing monthly gains to roughly 1.1%.
Copper’s relatively subdued performance during February was largely attributed to reduced trading activity during China’s Lunar New Year holiday, when mainland markets were closed for more than a week.
Analysts at ANZ noted that copper inventories in China rose more than expected during the holiday period, while global stockpiles also increased amid mining disruptions and trade-related challenges.
With Chinese markets reopening this week, attention has shifted toward renewed purchasing activity. Demand for copper is expected to strengthen in the coming quarters as investment linked to artificial intelligence infrastructure continues to expand.